How Real Estate Investors Identify Great Deals When Flipping Houses

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How Real Estate Investors Identify Great Deals When Flipping Houses
Words: 538 | Date: Sat, 10 Jul 2010

Here are 7 important thing to check when buying houses.

The obvious qualification when buying any investment property is if you are buying it low enough.

In order to qualify a house as a good investment, there are important points you must consider.

1) Extent of repairs
Wholesale houses mostly need repair.

It is important to assess the depth of repairs that need to be done and a fair estimate of how much it will cost.

If repairs are mainly cosmetic, then you probably have a good deal.

Unexpected fixes can east up all your profits.

2) Budget
Can you rehab the house within your budget?

Occasionally, it possibly will be essential to carry out an inspection even for a house that needs repairs to find out if you might need to do structural repairs such as plumbing, changing walls and so on.

3) Time frame
Can the changes be completed within an acceptable time-frame?
Will the changes increase marketability and selling price?

Speed is a must when flipping houses to keep costs low.

You must aim to spend as little as possible, make your profits and proceed to the next deal.

4) Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it may perhaps be necessary to assess the type of repair that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.

5) Neighborhood
Avoid war zones or run-down neighborhoods.

You must also stay away from expensive neighborhoods when flipping houses.

Staying within the medium price range will not only give you more deals, but your properties will be more marketable.

Is the house comparable with other houses in the same neighborhood?

Does its size compare with other similar houses?

These factors make it hard to get rid of and leave no money in the deal for you.

Stay within the average for the neighborhood to sell faster.

6) Comparable sales
Are comparable houses selling at a price that can leave profits for you?

Even thou you might think you are buying low, comparable sales might prove you wrong.

It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.

7) Demand for the property
Even in a depressed real estate market some neighborhoods are more marketable than others.

Is it accessible to schools, shopping, parks, hospitals and others that make it more marketable?

This will make it easy for you to sell the house fast.

Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.
Simon Macharia invests in real estate in Dallas Texas and runs his business from a real estate investing website that also automates his business. Click here to find out how to can automate your business and make more while spending less time and money.

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