Taking a moment to make sure that the property is truly a diamond in the rough is well worth it in the end. Using real estate comps can assist you in your research endeavors.
Look for units that have been neglected or forgotten. These units will have the lower price tags. You need to make sure that you have a budget for renovations in mind when purchasing a property to flip. Factor in a cushion to give yourself room for the unforeseen issues that could arise.
In order to ensure you get the most benefit from flipping a property, here is some important points to take away from this article:
The rules of traditional real estate investment still apply. Location, location, location is still the first point to consider. Don’t purchase a property in an area that no one wants to purchase in or where the market is done or declining. Even if you have found an unbelievably priced property that you think you can add a great deal of value to, purchasing in a bad location still limits the profit you can realize from flipping.
I want to look at the other points over my next couple of posts. Next time, let’s discuss the art of negotiation to get the deal, and investing while being smart.