| These tips will help you find good investment properties.
Obviously you can never go wrong when you buy your houses low.
In order to determine if a house is a good investment, consider these points.
1) Extent of repairs
Most wholesale houses need repairs.
You must determine the extent of repairs needed and estimate how much it will cost.
If you find that just cosmetic repairs are needed, then you probably have a good deal.
Unexpected fixes can east up all your profits.
2) Budget
Can you stay within your budget?
Every so often, it might be vital to do an inspection even for a house that needs repairs to find out if you might require to do structural repairs such as plumbing, changing walls and so on.
3) Time frame
Can you do rehab in a short time-frame?
Will the changes increase the value of the property to make it more marketable?
Flipping houses requires speed to keep costs low.
The goal should be to spend little money, make your profits and go 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 rehab 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 low-priced areas or war zones.
You also need to avoid high end areas when flipping houses.
Staying within the medium price range will not only give you more deals, but your properties will be easier to sell.
Is the house comparable with other houses in the same neighborhood?
Is it too small or too big compared to the other houses?
These factors make it tough to sell and leave little profit for you.
Stay within the average for the neighborhood to sell faster.
6) Comparable sales
Do homes in the same neighborhood sell within a price range that you can make a profit when you sell your house?
It might seem like you have bought it low enough, but comparable sales in the area 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 near important services like schools, hospitable, shopping, recreational facilities and others that make it more appealing to buyers?
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. Visit "http://www.realestateinvestorswebsites.net" to find out how to can automate your business and make more while spending less time and money |
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