7 House Flipping Mistakes To Avoid At All Cost: Flipping Part 2 of 3

7 House Flipping Mistakes to Avoid at All Costs:

1. Neglecting to do a thorough inspection inside and outside, including the foundation, electrical, plumbing, roofing

2. Failing to accurately calculate the purchase, remodeling, holding costs, and selling.

3. Underestimating the costs. Add an extra cushion for the unexpected.

4. Over rehabbing and frequent design changes are often costly!

5. Doing it yourself vs. having a team

6. Not having a plan before buying or knowing the exit strategy. Are you selling to a homeowner or renting it? The remodel and design cost may differ.

7. Working without permits. Hire a professional inspector and appraiser. They can help you by checking the inside and outside of the house to determine the condition of the property and what repairs are needed.

You can do a preliminary inspection before hiring the inspector and appraiser to determine the condition of the house, its curb appeal, where is it located and what is the surrounding area. Is this a project you really want to take on?

Avoid things like the house located next to an auto shop, train track, cow pasture, garbage dump site. Even barking dogs and trashy neighbors can look like a profitable deal on paper, but the noise and smell can deter potential buyers and that means a longer holding time for you.

Want the best deal?

Find the worst house in the best neighborhood! We look for those that require mostly cosmetic repairs and in the best neighborhood we can afford. We need to make sure the calculations are good for the project to be profitable.A contractor can give you an estimate of the repair costs after the inspection and appraisal.

Rehab projects can be done faster with a team vs doing it all by yourself. Someone needs to manage the project.

Remember the longer it takes to rehab, the higher the holding costs which means less profits for you. Use a licensed and bonded contractor who obtains permits for work getting done. This will prevent possible problems, lawsuits, or more costly repairs to correct mistakes in the future.

Where can you find comps? Check online at Realtor.com , Zillow.com , etc. Use Google to check out neighborhoods. Go to Open Houses in the area to see what other properties look like in their after repaired conditions. You will get valuable information like what it is selling for in what condition so you can design and estimate the costs for your project accordingly.

Middle income neighborhoods are great for rehabbing. They do not demand marble floors and showers or a “smart home” with high tech appliances and home features.Find a nice house in a nice neighborhood where people want to live. The median is your sweet spot for flipping!

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