Flipping Homes for Beginners

There are several ways to generate money in our lives. Creating multiple networks of cash is one of the quickest ways to improve your annual income. For instance, you can make money by work “x” amount of hours at a “t” amount of time. However, you can also generate income through investing and selling. While you could buy a hundred inexpensive items and slightly increase their revenue, this process will take more sales to create the investment. Instead, one of the quickest ways to generate a substantial income is to buy a property and selling it for more. This process can help produce large sums of money! However, flipping a house is a risk. Every home comes with its own set of issues to evaluate. If you are looking at flipping your first home, here is everything you need to know:

General Rule of Thumb
You want to find a home in which you can sell for more money. To do this, you must find good-buy homes. These could be foreclosures or just well-priced homes. Look at the price of other homes in the neighborhood. Perhaps, you notice that all homes in a particular neighborhood are selling for $200,000, yet you find a home for sale at $150,000. Is this a good-buy to flip? The general rule of thumb is you must determine the home's ARV. This factor is the home’s "after repair value." You should pay 70% of the home's ARV when investing. Any higher and you may be in a danger zone to lose on your investment.

Repairing Property
When you find the home at a good price, it is probably going to need some renovations and repairs to increase its market value. Therefore, having a general idea of the cost to fix everything in a home is a start. The more work you can do yourself, the more you can save. However, if you cannot do some labor jobs, you need to calculate that into your repair cost as well. Try to get a very close ballpark estimate to the amount of money you will invest in the home to repair it to get it to the price point you want.

Selling the Home
After all repairs and renovations are complete, you are ready to sell your home. The primary step to flipping a house is knowing how to flip a home. Unfortunately, this process can come with practice. Make your home a price that will sell on the market. You can use the surrounding houses to generate what the value of the home should be estimated around in order to sell it.

Flipping homes is a great way to make some money. Learning ARV and repair costs will help you make a wise investment. Flipping homes does not happen as quickly as it does in the television shows. Understand that these projects can take time. With some of these tricks in your arsenal, you are ready to get started! Good luck with flipping your first home, and be sure to visit us for all of your product needs!