Flipping a Property

Real estate is a good investment but flipping a house may not be as easy as it sometimes appears.

The first thing you need to know for sure is the market area. Just because a house is on the market for a low price does not mean you can fix it up and sell it for a $20,000 profit. Be sure you know what is selling in that area and how much houses similar to the one you are looking at are selling for. You must also know a little bit about the economy in that area. We have fixed up houses to sell and found many interested parties but found that not many people in that area were qualified to buy. So find out as much as you can about the area.

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Know as much as you possibly can about the repairs that need to be done and how much it will cost you. If the utilities are not one when you go to look at a house, ask if they can have them turned on before you go see the house. If they will not have them turned on, remember to allow monies to take care of possible plumbing repairs, electrical repairs and heating and cooling repairs. The costs of these can be minor or very expensive.

If you are not real familiar with repairs other than cosmetic repairs, you may want to pay the $200 or $300 that a Home Inspector would charge to have him make an inspection of the property. Again, his best report on the house would be after all utilities are turned on in the dwelling. You may also want to hire the best property management companies in Naples FL has to offer. They will help you manage your property professionally and give you the right and reliable service.

If you have someone who is going to be doing your repairs for you, you probably want to take them with you to inspect the property. They may see things that you do not since repairs are their line of business. They can also give you a better estimate of the cost of repairs if they see each item before you purchase the property. Sometimes you decide what needs to be done, purchase the property and then get your crew out there. When they see the property, their estimate is much higher than you expected because they saw things you missed.

Don’t forget that if you are financing this property, you will have interest payments to make on your loan while you renovate the house. You will also have deposits to pay to have all utilities connected and utility bills during the time you are working on the property.

When you purchase the house, you have taxes and closing costs to pay. When you sell the property some of these hard costs will appear again.

And, don’t forget that while you own this property and are working on it, you will want to have it insured in case of fire or other damage.

Don’t forget to add an agent’s percentage to your calculations also. Even if you plan to sell it yourself, you may end up needing the help of a professional. Remember, the longer you hold it trying to sell it yourself, the more you pay on utilities and interest if you have a loan on the property.

Buying, fixing up and reselling a piece of real estate is a great investment just be sure you calculate all the costs before signing on the bottom line of that contract.home-property122

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