Anybody have any house flipping do's and dont's? Found a house that I would love to purchase and flip. Any tips from folks that have done it before? Home was built in 1998 and is white rock and Cedar. Needs a new roof, trim paint, and the cedar siding needs to be scraped and re-stained. Countertops need to be upgraded for sure, but everything else is in great condition. It could ust more landscaping than anything.
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Good luck,! wher are the pics?
my mom's cousin bought an old farm house and tried to flip it but they got in way over their heads...They took all the doors down to replace and got rid of them, they didnt realize that they were not as wide as the standard size doors, cost them a lot more but they're not the smartest people in the world. I think they ended up spending more than they made. -
how much per squre foot living can you buy the house?Comment
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Rule #1: You make your money when you buy the house. Meaning you have to buy way below market value.
Rule #2: Location, Location Location.
Rule #3: Don't go over board on renovations/remolding. Do the bare minimum to be able to sell.
Rule #4: Sell it fast and for more money than what you have in it.Comment
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Charles has some very, very good points to follow. Just remember, when you start tearing things out on an older home, you never know what will be underneath to be fixed and when you start tearing or remodeling an older house, where do you stop on the tear out? If you fix, repair or repaint something, will it make something next to it look bad? The biggest thing to think about is what is the appraisal on the house, loan on the house and how much can you get it for.
We bought a house last year and flipped it, but the house appraised for 96,000, the loan left was 74,000, but we paid only 51,000 for the house, put about 40,000 in the remodel, but ended up selling the house for 134,500. Our money was made on the purchase.Comment
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I Don't really know anything about it but I would get an inspection done first. I was going to buy a house that was being flipped, last year, but the inspection showed that all the wiring in the house was bad and it needed to be ripped out and replaced. The owner had know idea 'cause when he bought it he did'nt have it inspected. Just something to think about.Comment
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As previously stated, you'll have to buy it really cheap to get your money out...especially a house that new.
Kitchens, bathrooms, and flooring sell houses.....Comment
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Call insurance company and get a CLUE report on the home first. Then use some of the above tips. Im in the same boat kinda. My dad passed and Im renovating their old home before putting it on the market. Actually Im bringing it up to selling standard. The quandry Im in right now is the bath tub. The drain ring rusted out of the tub. CAlled one guy in for a quote to do a liner and it was $3,900.00 bucks. Wouldnt be bad if I was gonna live there. Called some other folks in that do refinishing of tubs but they dont do repair work. The search continues. Know your target market, dont over improve, have home inspected and repair the inspection list. This takes leverage away from buyers agent.Comment
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Way harder than it appears. You have to make about 15-20k just to cover buying and selling fees.
I bought a home for 73k and sold it for 106k and lost money. You need to know people to get out of title fees...and about 15 other fees that go along with buying and selling homes.
Remember when selling the seller pays most fees. 3% both ways or 6% right off the top for broker fees..6k on a 100k home just to sell.Comment
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everyone is bringing up good points. Always remember you are not remodeling this house to your tastes. Go NEUTRAL on everything, paint, carpet, flooring, countertop, etc. Expensive upgrades typically will not help attract better/more qualified buyers unless you are in an upper end neighborhood and will not get you a good ROI. The best return is usually in kitchens and bathrooms.Comment
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Lenders require a 3 years chain of title... We are much harder on properites that are being flipped... (appraisal)Comment
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Let me know if you need any help. You can replace the tub for way less than that. I am a builder and remodeler.Originally posted by Hogmauler View PostComment
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I'd ask myself, "why is this guy selling the home under market value so that I can buy it, pay a 6% sales commission (assuming selling as-is) and make money? Then have to sell it with fix-ups (material cost and your time) and still make money on the deal?"
When selling any home, put new (inexpensive) brass locks/knob on the front door and paint the door it nicely, and replace the bathroom commodes/seats with new (inexpensive) ones to give the house a newer appearance.
On the bathtub question, I'd look at buying a new tub at Home Depot, ripping the old one out, and look/post on craigslist for somebody who can do the rest of the job that you are not comfortable with for cheap as a side or weekend job for extra cash.Comment
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Rule#1:This house (built in 1998) is half (and in a few cases a quarter) of what the new waterfront houses with the same square footage are, and some of them are not on dock permitted lots.Originally posted by Charles View Post
well see what happens, I just hope I can make myself take a chance if the opportunity works out
Rule#2:This house is THE defenition of location
Rule#3:Some roof repair and some paint is all the is NEEDED
Rule#4:I would have an investor purchase the home with cash, so payments and interest would not be a concern if it sits on the market for a whileLast edited by Codie; 05-26-2010, 04:09 PM.Comment
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