What Kinds Of Flip Houses To Look For
You want the type of house that your buyers will want, the ones that, for
them, sell the fastest, and, of course, ones they can make a profit on.
Following are some tips on what you should be
looking for. In general, especially if you are
just starting out, avoid houses in the high end of the market.
Yes, they can look beautiful, and clean up real nice, but most
retail buyers will not be able to afford to live in them. And as
rentals, they are murder when investors are trying to cover the
mortgage payments.
* You want to work mainly with houses in working class
neighborhoods. Investors will be interested in these types of
homes for rental purposes. And a majority of reliable renters
will want to live in these neighborhoods.
* Look for houses in need of repair.
* Look for peeling paint, broken windows, unmowed grass, general disrepair.
Especially in the beginning of your career, deal mainly with
houses that do not need structural repairs, like foundation work.
You will receive your fees quicker because any needed repair work
can be done relatively quickly. In the neighborhood you are
working in, you want houses that are most affordable for
first-time buyers. Those are the houses your buyer will want to
rent out.
Put another way, you want houses in the median price
range for your area.
* The ideal house investor will want to buy will have 3 bedrooms and 2 baths, although
you can get away with 1 ½ baths. This is the bread and
butter rental house for your buyers. If your area has only 2
bedrooms and 1 bath, you may have to go with that. Or, go
50-60 miles out to do your farming for good deals.
What about war zone houses?
* Generally, you will do better in working class neighborhoods.
However, if you have buyers on your buyer’s list who want war
zone types of homes, go for it.
* Avoid houses with weird floor plans. For example, houses
where one is required to go through a bedroom to get to a
kitchen, etc. They will be harder for your buyer to rent or retail.
* Avoid houses that are too small.Medium size houses are what
you are after. Medium square footage for your
area, that is.
The more equity your deal has in it, the better your chances of
unloading it to a buyer for fast cash.
More equity means there is plenty of room for your buyer’s
profit, not to mention your fee.
* You, of course, want to be dealing with motivated sellers
who are willing (or forced) to take a discount from their
asking price.
