How To Find A House To Flip | 5 Ways To Recognize Value
To learn How To Find A House To Flip, you must first recognize what features make a property valuable.
One of the most important steps in flipping a house is finding the right property. Some people even say that once you’ve signed the paperwork and officially purchased a house, you’ve sealed your fate in relation to the profit you will make.
While there are certainly some variables when it comes to rehabbing and selling, for the expert house flipper, these steps are more or less constants. Seasoned flippers are familiar with their contractors and know how much repairs cost. They also know how much they will be able sell a house for. For these people, the buying process is the game, set and match.
So when searching for a house, it is wise to know what you should look for. Moreover, if you want to learn how to find a house to flip, you should educate yourself on what makes a property valuable.
That being said, just because a property has some, or all, of the attributes in the following list does not mean you should necessarily buy it. It all depends on the value compared to the price.
Buying real estate is similar to fantasy football. While Greg Jennings is a great wide receiver, you wouldn’t choose him for the first overall pick in your draft. With real estate, a house might be in a great neighborhood with some great features, but you don’t want to over pay for it. Conversely, if the home has negative value, you should only consider buying if you can negotiate down considerably.
Below are five of the most important features that make a home valuable:
How To Find A House To Flip: #1. A Strong Foundation
As a house flipper, your job is to take something unattractive and make it attractive. A home that is aesthetically unpleasing and rough around the edges makes a great fixer-upper. However, a house with a major structural problem is something you should try to avoid.
Damages to the foundation cost significantly more to fix than some peeling paint or an un-mowed lawn. You want to rehab the house to make it more presentable, not rebuild it from the ground up. A rough looking house with a strong foundation is always more valuable than a nice neat house with a structural problem.
How To Find A House To Flip: #2. A Good Neighborhood
Possibly the most important feature to consider when determining the value of a property is the...