House Flipping – Tips for a Fast, Risk-Free Flip

Despite the changes in mortgage qualification rules and more homes up for sale, many real estate entrepreneurs lookign for investment properties will see the value in finding a home or condo that can be quickly turned over for a profit. The problem with older, run down homes and condos is the time, building expertise and funding needed to flip that house.

Risk-averse house house flippers will be looking for homes that have a good price potential and won’t have too much to fix. Sometimes people building their own homes and on occasion, custom builders run out of money and can’t finish the home and property they’re working on. Just like a home in foreclosure, this is an opportunity for those who have the capability of finishing the property and then selling it for a nice profit.

If you’re going to flip that house today, you’ll want to ensure you don’t have too much demolition work to do and the existing structure doesn’t lead you into an exasperating series of problems. Old houses can do that. Worn out old furnaces and ductwork, stairways, roofs, windows, and cracked foundations can mean nightmares for your renovation guy. Will it be up to code for energy efficiency? And how about the insulation in the attic?

Good sound judgement in assessing resale properties is needed to flip houses successfully. A lot of people like the potential of making a 100k profit on a flip, but dangers lurk for the unaware.

Here’s a few tips if you are thinking of flipping a house:

1. Find a home that is a diamond in the rough, one is basically sound structurally and where enhancements/improvements will be easy to fix and upgrade
2. Make sure the neighbourhood is good as buyers will be sensitive to the area of the home
Find out how far the nearest elementary school is
3. Check the foundation and roof thoroughly
4. Check the floor and attic for mold and mildew
5. Check for use of toxic insulation used in the attic and walls
6. Check the layout and walls to ensure the kitchen and main bathroom can be enlarged and that an extra bathroom might be possible, as this is very important to buyers with families
7. Hire a home inspector to check the house thoroughly and do the check with him
8. Check with your realtor about how many homes have been sold in the neighbourhood recently and how many are up for sale now.
9. Check previous repairs and whether you’ll need to redo them
10. Check the condition of plumbing, furnaces, and water heater and central if it exists.

Having a real estate agent who knows the area to advise on your house to flip is a good asset.  If you can find a fairly new house to flip, or an unfinished house, it is more likely to sell in today’s market. An unfinished one means you can tailor the finishes to suit your goal of selling quickly and attracting the maximum number of buyers. Good luck in finding a home to flip. Let’s hope it’s not one of those disasters you see on HGTV shows like Flip that House. You could lose more than your shirt on a bad choice let alone a money pit.

Need a mortgage for the home you’d like to buy? Check the latest mortgage rates on the mortgage blog.