One great investment strategy that’s always proved popular is flipping houses and condos. Those who have the cash to take older, run down properties, spruce them up and find a new buyer can make a small fortune in a matter of months. But it’s not as simple as all that, and anyone just getting into this game needs to be aware of the risks and costs associated with it.
- Be conservative, not optimistic. Those new to the flipping game often make the mistake of underestimating the cost to renovate a house. For those with experience, it’s well known that building new is often more cost effective than renovating. There is real cost associated with removing old materials before new materials can be installed. When building new, you don’t have the cost of tearing out the old materials nor the cost of disposing of them. Be sure to include this cost in your estimate.
- Understand the neighborhood. As a house flipper, one of your key strategies is to get in and out of the house as fast as possible. That means you want to offer the best house in the neighborhood at the best price. …read more