House flipping is extremely popular, but it’s not always profitable. Here are a few tips to make sure that you make money on your investment.
Flipping a home is becoming more and more popular these days. We have a lot of investors here in this market who do it, and if you’ve watched house-flipping shows on HGTV, you might be under the impression that this is a cheap, easy way to make some money.
“Make sure to do your research on the home’s condition and location.”
I hate to be the bearer of bad news, but that’s not usually the case. The No. 1 pitfall I see from first-time investors is paying too much for the house. You make the money in a real estate deal when you buy, not when you sell. You need to make sure that you have some skills in place to run some solid comps, know how much the repairs are going to cost, and know how much you might be able to sell it for after. Your numbers and your estimating are what’s going to make you or break you.
I would also make sure you do your research on any home’s location. Everyone wants to buy a foreclosure, but you don’t want to buy one with major damage in a bad location.
Anything with a house can be fixed, but how much money do you want to invest and how much are you going to get back? That’s the real question that needs to be answered.
If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
At Keller Williams The Trembley Group, we pride ourselves on being the experts at more than just selling real estate. We are local residents, some of us have been here for a lifetime. The rest of us will be here until the end of time. We love living, working, and playing in the diverse backyard of Coastal Carolina, and look forward to helping you live and love your dreams soon too. Please reach out to us by phone or email for personalized service and one-on-one advice.