By Clay Davis
When you are embarking on a new business venture of flipping homes that need a little repair, you need to realize you will be putting in a lot of work. The benefits, though, can well outweigh the disadvantages. This endeavor offers you the chance to make profits that you wouldn’t normally be able to realize in a regular 9-to-5 job. Plus it allows you the ability to work for yourself.
Many who go down this road not only become wealthy, but they truly enjoy the experience. Most acknowledge that it can be risky, but the risks can pay off in a big way by earning you a great return on your investment. The key to make the most of this business is to locate homes that seem almost unsellable when you first see them. However knowing you have a plan in mind, you can actually turn them into highly profitable sales that might even double your investment on some homes.
There are certain characteristics in a house that you should look for when trying to find the right one to fix up and resell. This is what will make or break your profit potential.
The first type of home to consider revamping is sometimes referred to as a “doghouse.” This is the type of house that while cosmetically unattractive, is structurally sound and has little or no damage. This means that while you may need to paint, clean, and do some drywalling, you will not need to repair any major damage to the house, such as the roof or water heaters. These doghouses usually sell for less because the prior owners simply didn’t diligently keep up with the property maintenance. In fact, they most likely will sell for far below market value because typical buyers simply can’t see past the dirt, grime, and the overall dreary look of the home. With only minor core faults, though, you could stand to make a lot of money with its purchase and subsequent touch ups.
To find the right house you have to scan neighborhoods for the right opportunities. No matter how great the property looks to the naked eye, if you do not have the right location you will not be able to sell the house for a profit that makes you smile. You need to spend some time doing this preliminary research patiently and make an objective determination whether the neighborhood can truly retrieve the price for which you would want to sell the house. Look for indicators that the area is being developed and improved. If instead of an appearance of progress that part of town looks more like it has seen better days, then a house in it will simply not sell as quickly or profitably as you likely desire. Resist the urge to become emotionally attached to the home simply because it appeals to you personally.
You also need to research recent crime statistics in the area, as well as proximity to schools, downtown areas, highways, and other important features of the town in which the house is located. Experienced house hunters learn how to locate a home in an up-and-coming area and buy it for a low price. That is the skill you need as well to make this an advantageous business.
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