We have all heard stories about flipping houses and the profit involved in such a venture. I will attempt to give the reader some guidelines as I see the pros and cons of the practice. Even though it can produce profits, it also has some pitfalls to avoid. Following is my list of dos and don’t as I view it from years of real estate experience.
1) Talk to as many as possible who have had some experience at flipping houses.
2) Talk to your favorite Real Estate professional and arrange to view a number of houses to determine the listings most suitable for flipping. Learn all you can in this process and invest enough time to be knowledgeable when this phase is completed.
3) Learn to tell the difference between defects that are cosmetic and easily corrected and defects that are structural and require difficult and expensive corrections. Avoid the latter, especially if you are new at flipping.
4) Cleaning, painting and floor covering are usually considered the most in-expensive ways of adding value to a property. Also lighting can fall into this category if one is careful about prices.
5) Avoid tackling structural corrections, such as moving walls and fixing cracked concrete until you have been through several ventures and gained expertise in the field.