I often get asked if there is money to be made inflipping houses as is witnessed and somewhat glamourized on several tv shows. The answer is yes IF your project inslcudes 5 key ingredients.
- You must select the RIGHT property and pay the RIGHT amount for the property. The right property is one that is a diamond in the rough – is selling for much less that other properties in the area, because it is not up to the standards of the neighborhood. The purchase price must reflect the costs required for renovations, and the profit that you are expecting to realize for your hard work, and efforts. The renovations should get it up to the neighborhood averages not create the most expensive house in the neighborhood.
- A house flip must be treated as a full time business as it must be done right and quickly
- You will need to be in close proximity to the house even if you are hiring out all the work to ensure that the work is progressing as per plan.
- You will need to manage the work time lines and quality of your contractors yourself in order to meet aggressive timelines and ensure that there is profit to be made from the flip.
- If you can answer yes to the above, you are well positioned to make a nice profit from your flip!
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