Can you make money flipping houses? The short answer is yes, and it can be fun and exciting and bring you significant returns when done properly. However, you need to understand the hot spots in your local market and be able to foresee upcoming neighborhoods for best results. Once identified, know when to get in for a low price and what the rehab would entail to ensure your selling price is right for the market.
The Metro Washington DC market happens to be one of the most lucrative and sought-after real estate markets in the world. Our team of experts have contacts and extensive information to assist in finding distressed homes for rehabbing. Below are a few key recommendations.
Where and what market to invest in:
You’ll never be able to make money flipping houses if you don’t have a thorough knowledge of your local real estate market. The only way that you will know if a given property is truly a deal is if you know the market and understand competitive price points of the surrounding area.
Know the costs of general repairs: When you find a good deal, you’ll have to be prepared to move quickly. You should already have a good idea what repairs will be needed on the property, as well as a reasonable ballpark of what the repairs will cost to enhance the home with an above average return. No matter how good a deal seems to be you could lose money on it if the purchase price, plus the cost of repairs, exceeds the market value of the home. Always keep your profit margin in mind.
Break out the rolodex of reputable experts: If you don’t have much experience in home remodeling and repair, you’ll have to create a team of experts whose assistance and knowledge you can rely on in short notice. You may not have ample time to start looking for all those required to assist in the process, so make sure you have a list of star players to pull off the bench when it’s time to go! Note, while you’re repairing, you will be paying taxes on the property, so time is of the essence.
For additional information on how we can help you in the process of profiting in real estate, call us at (800) 674-5363 tor sign up for a free consultation.