In my last post about making your profit on flipping a property, I want to discuss what I feel are the top points to use when you are investing. These properties we are looking at were reflected in the real estate comps when you did your research. Here are a few more tips to ensure your flipping experience is a success:
– Look for the worst home on the best street. If you can find homes that are surrounded by a great neighborhood, then you’ve got a much better chance of flipping for a good price once you’ve done the warranted repairs.
– Negotiate – always make sure you are getting the best price you can for the property. Don’t get caught up in the excitement of the potential profit. Get the best price on the property you can and be prepared to walk away if the agent doesn’t negotiate.
– Account for the unexpected. Even with a budget in mind for renovations, chances are something will come up, so make sure you have room in the budget to cover these. Foreclosures will need to have a larger budget given the nature of the units.
– Consider the tax laws for your target area: Depending where you live, the tax consequences of flipping a property may impede your ability to make good profit on a property. Make sure you take all of these into account when deciding on a property to purchase for flipping.
Hope these points are helpful in your future deals. Visit us at InvestorComps for more information and real estate comps access.