Real estate still makes a decent investment in today’s market place, for those who know what they are doing. Finding a hose at the right price, fixing it up and selling it again can be a good way to make additional income.
1. Find the House
Look for a house that is appropriately priced in a neighborhood where houses are selling. Buying a house in a neighborhood where houses are not selling does not make sense. Furthermore, buying a house that is priced too high will make it difficult to make any money. Buyers want a house similar to those around it. Look for a house that has not been taken great care of, but that can be easily remodeled.
2. Get a Home Inspection
Hire a trained professional to do a home inspection. Listen carefully to what problems he finds. If the repairs cost you thousands of dollars, then the house will be too expensive to consider as an investment property. If the current home owner does not allow you to have your own inspection done, do not buy the property. Run away, as they are trying to cover up something they know will be discovered. The current home owner may go a long way to cover up a problem that he or she does not have the resources to fix.
3. Plan the Repairs
Decide what repairs must be done to the house. Remember that the most money is made when the repairs are done quickly and the house is sold again. This is not the place to make a dream home. It is the place to get in, do the mandatory repairs, and get out. People like open spaces, neutral colors and two car garages. Putting in new appliances is often a good investment. Move quickly on developing your plan. Many people start out to flip a house, buy the house, and then procrastinate. Do not let this happen to you.
4. Start the Repairs
After making your list of repairs, get in there and get it done. Do not procrastinate. Move quickly so that you can get the house listed on the market again. Decide what you want to do yourself and what you will hire others to do. Remember that many communities require you to hire a licensed plumber or electrician to do some repairs. Again, many people buy the house, plan the repairs and then put the project on the back burner. Do not let this happen to you. The house will then cost you money, instead of making you money.
5. Sell The House
After you get the basic repairs done, get the house back on the market. Research what houses in the market are selling for and price this house to move. Be willing to negotiate so that you can move on to flipping the next house. Remember that taking a lower price will often increase your profits, if you have borrowed the money to buy the house. Get it gone quickly.
Money can be made in this real estate market. Where many people fail is that they buy the house and then procrastinate about getting the work done. This will drain your wallet. Get in there and get the work done very quickly. Sell the house quickly and move on to the next project.
Stephanie Kurtz is a guest writer for www.iowacityrealestate.com.