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House Flipping 101: What Makes a House a Good Flip?

Time and Date May 21st, 2014 User by House4cashbuyers Comments No Comments

Flipping houses is hard work and requires some skill in the field. If things aren’t done right, that can be big trouble for you. Finding bargain deals before other real estate investors get them is a huge key to being successful as an inves…

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House Flipping 101: What Makes a House a Good Flip?

Time and Date May 21st, 2014 User by House4cashbuyers Comments No Comments

Flipping houses is hard work and requires some skill in the field. If things aren’t done right, that can be big trouble for you. Finding bargain deals before other real estate investors get them is a huge key to being successful as an investor. You should be creative and use some old and new systems to help you find the best deals in your area but first as a beginner, you need to know what to look for in a house to determine if it would make for a great flip project or not. Look for a house that has some hidden value along with certain core features. If the numbers don’t work with one home then move on to the next one. Below we have listed four things you need to consider when you are searching for a great flip project.

 
1. Substantial Structural Complications
Fixing broken windows, replacing sheetrock, laying carpet, and fixing chipped paint are a great way to transform tattered houses into something great but beware of structural problems. Not only is it a lot more money to fix them but you basically will have to rebuild the house. A ragged looking house with no structural problems has more value than a great looking house with structural problems. For a more experienced investor structural problems can be a big plus when looking for a flip deals. For beginners though, avoid houses with cracks in their foundation and any serious environmental issues.
2. Location, Location, Location
Location is everything when searching for a great flip because its a great detector of what the house will sell for. The market value or ARV (after repair value) will help you judge approximately how much money you can make from a house flip. You should try to find the worst looking house in the nicest neighborhood, this always makes for a great buy because of the look of the other homes you have a lot of room to increase the value in the bad looking home. You just need to make sure you buy low so that you can sell high but, not over the ARV, so be sure to leave room for a nice profit.
3. Surrounding Community
The neighborhood and surrounding community can greatly affect the value of a home. If the home is in A-1 condition but is surrounded by abandoned homes, heavy traffic, or power plants then this will decrease the value of the home. If the house is in not so good condition but is in a hot area, where there are shops and restaurants near, or a beach or lake front then this will increase the value of a home. The more desirable the area the quicker the house will sell.
4. The Best School District
School district is a big factor to first time home buyers and home buyers with young children. Because of this you, need to focus on areas with not just good but the best school districts in the town. Great school districts greatly increase the value of a home and usually the surrounding communities are just as great to live in. Beware of houses located in bad school districts because they tend to have a negative effect on the markets value.

 

If you’re looking for great flip deals to purchase or want to learn more about how you can sell your house fast, simply fill out our Fast Response form or give House 4 Cash Buyer’s a call at 404-220-7139. Our experienced real estate professionals would love to sit down and discuss your needs. One phone conversation can be life changing. We look forward to hearing from you!

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