Finding a House to Flip
Article by A. McGavin
Locating a house to flip is not hard. All it takes is knowing what to see, knowing what to stay away from, and keeping your feelings out of the way. To show you how easy it is, I'm going to document a house I recently purchased to flip. Before I do that, I'll outline my house flipping methodology.
First, I do this to make cash. I know there is tremendous prosperity in flipping houses, and I am excited to get some of it. It doesn't take a genius to comprehend the art of flipping - find an undervalued, under-appreciated property, fix it and add some simple touches, and sell it for cash. It's that easy.
Second. In spite of my first rule, I am not in this to burn out or go belly up. I want to make a lot of cash, but I want to do it over time, maximizing profit and minimizing risk. This means flipping one property at a time (for now), over the course of a couple years, until enough money is built up to become more aggressive. Although this probably isn't the most used track, and isn't the method glamorized on TV, it's effective.
Locating a House to Flip - Rule #1
Your search for properties should be limited to the following: 3-4 bedroom, 2-3 bath properties with attached garage. There are more of these properties than any other on the market, and there are more buyers for these properties than any other. This is good because it will make it simpler to find a fixer-upper and when you want to sell it you will have a lot of eager purchasers.
Finding a House to Flip - Rule #2
No major renovations!! This is where people get in big debt they can't climb out of. Don't go for the property (especially when starting out) that requires walls to be moved, studs to be exposed, or any other major improvement. You should stick to the flipping houses money makers - new paint (interior and exterior), new carpet, new countertops (kitchen and bathroom), new tile, landscaping, new appliances, and great garage floors. All of these can be done quickly, simply and relatively inexpensively, and return big dollars. Successful house flippers don't go for broke all the time!
Finding a House to Flip - Rule #3
Keep feelings out of it! It is important to remember that you are not looking for your dream home (that comes in at about property 4-6). You want something that has a good foundation, needs minor improvements, and that others will purchase when it's complete. When you are through, this flip should look like the perfect property for that newlywed couple. You aren't going to get to customize it the way you want anyway, so look for properties that maximize profit, not necessarily ones that fit your eye.
Using these three rules, you should be able to find something you can successfully fix and flip, to begin building your real estate empire!
About the Author
Expert House flipper | Experienced Real Estate Investor
