What Type of Homes Are Best Suited for Flipping?
When it comes to flipping homes, most people do not have a problem with choosing the right location. Everyone knows that they have to be at the right market at the right time in order to profit from house flipping. The next step to figure out is choosing the type of home that would be best suited for flipping. Depending on your goals, there are numerous answers to this question.
Houses requiring minimal f ixes: You might not be able to find the perfect home for flipping, and that is perfectly OK. What you want to look for instead are the fixes that will require the least amount of investment on your end. This means you want to have a house that has a well-established structure. Having a well-established structure means that certain things such as plumbing and electricity are in working order. If minimal repairs are needed such as replacing doors, fixing old wallpaper, or repainting the exterior of the home, then you are good to go. Remember the general rule of estimating the cost of any job, take your estimate and tack on an additional 20%.
Newly built homes: This is definitely an option for those who have more experience with house flipping and have access to an established network, but some people will purchase homes that have just recently been built and sell those to prospective buyers. The main advantage is that next to no repairs are required due to the fact that the house is newly built. The only downside is that you will be charging far more than the original price of the house, therefore you will need to be extremely good at negotiating with buyers in order to profit from flipping these kinds of homes.
Houses located in bullish real estate markets: It is worth repeating that location is a huge determinant in choosing the type of home that you want to flip. At the end of the day, the types of houses that people want to buy (townhomes, bungalows, residential homes, etc.) and where they want to live will ultimately have the biggest influence on your decision of a flip-able home. There is no point to getting a great deal in a real estate market that is simply not profitable for the time being.
Although these three categories may be a slight oversimplification of the types of homes that are best suited for flipping, most homes that can be flipped generally fall under these classifications.
Which homes have you found to be best for flipping? Share them on social!
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