Saturday, February 25, 2017

Phoenix Real Estate Investing Course 101: What Makes a Good Flip House?

If you’re flipping a house, the first Phoenix real estate investing course to get under your belt is what makes a good flip house. Too many people get into the industry and don’t do well because they simply bought the wrong house. They weren’t poor negotiators, managers, or flippers, but they chose the wrong investment. Before flipping a house, do the research to know what kinds of houses need flipping.

Phoenix Real Estate Investing Course
Phoenix Real Estate Investing Course
The first and seemingly obvious necessity is that a flip house should not already be perfectly cosmetically. Flipping houses is dependent upon buying an undervalued property – the prettier the home, the less likely it will be undervalued. For general real estate investing, buying a home that needs little to no renovations can work. However, that is for general investing and does not fit the flipping category.

Undervalue or cosmetic imperfections can be found in a lot of different forms. The house could just be dirty. Put in a new toilet, change some tiling, and give the exterior a power washing and it could be a new home. Meanwhile, some project may go so far as to require knocking down walls. The imperfection is not the important thing to worry about. As the flipper, the concern should be how much the home will sell for after the renovation, how much the renovation costs, and how long it takes. If you plug in the numbers and you come out making a solid profit, you could rationalize most renovations.

Besides the home itself needing work done, an important part of your Phoenix real estate investing course 101 is checking the area and neighborhood. These are aspects you can’t control but may be adding to the house being undervalued. If there are variables you cannot control decreasing the home value, it will reduce risk to avoid the home. Even if you plug in numbers and you can sell for a profit, if you can’t sell because of the area you still won’t have a profit.

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