Over the past decade property flipping has become more and more popular with investors who want to make some quick cash. The idea behind flipping is to buy properties at greatly reduced prices, fix them up and then quickly sell them at or above market value. Estate-sale homes, older homes that are outdated or damaged, and homes facing foreclosure are all potential gold mines for both new and experienced flippers.
The biggest problem that all, but particularly novice, flippers face is that they may not get back a good return on their investment. Many investors try too hard to make the investment property look as upscale as possible and overspend on materials and renovations, making it nearly impossible to make a profit. Others lose their profit before the renovation process even begins because they neglect to properly inspect the home before purchasing it.
If you are thinking of buying a fixer-upper to restore, either to flip or to live in yourself, it is always best to get the advice of a professional. A building contractor, architect or a knowledgeable friend that can to help to determine the condition of the house and the magnitude of work involved in restoring it.
Read full article...