As the old saying goes, you gotta know when to hold em, and know when to fold em, all investment properties are not created equally. There are definitely some things you want to steer clear of if you aren’t interested in doing a total tear-down. Here are some tips for a new investor from all of us at The Investor Hub.
When looking for a property to flip with a relatively short turn around, stay away from properties with questionable or bad foundations. The price of the property might seem great, but repairing the foundation of a home can be a ghastly expense. Even if you can repair it without having to start from scratch, it is as costly as it is time consuming, taking much longer to get the house flipped and back on the market than one would hope.
Location is everything. If you are looking for a property to fix and flip, no matter the price, evaluate the location. Is the property on a busy street, what is the crime like in the neighborhood and what is the proximity to desirable amenities. It is in your best interest to skip the low priced home in a less than desirable area and invest in the worst home, on the best block.
Look at the shape of the house as well as the floor plan, if the property is “unique” in shape this may not be the best investment property. Odd shaped houses tend to stay on the market for a longer time. Same thing goes for floor plan, buyers are looking for an open space, furniture is what determines a space not necessarily walls. If it becomes clear that you will have to demolish multiple walls, it might not be as cost effect or produce the return that you have invested.
If you are looking for a flip that is to the point and cost effective, its essential to know when to say no, to what may seem to be a killer deal.