House flipping is a great way to become your own boss and build a future. Avoiding any of these house flipping risks can save you time and money and get you more money for your next flip.
House Flipping Risk #1: Too Many Large Repairs
When buying a home for a flip it’s important to understand how much each project may cost. All repairs add up, and even doing small updates can end up costing you aren’t careful. To get the most ROI make sure that you only have one or 2 max large repairs planned. Make sure the repairs you have planned are bound to see good return on interest, such as a kitchen update. If a house has too many repairs that need to be completed, pass and save your checkbook for the next one.
House Flipping Risk #2: Not Sticking To Your Budget
Having a set budget is house flipping 101, but in order to stay in the black, you need to stick to your budget. You can easily stop yourself from going over from doing daily expense reports and make sure that everything is adding up where it should. Spending less than a half hour a day on expense tracking can save you big money, and make it easy to make sure your money is being spent in the right places. Read our article on our top financial planning apps to make sticking to your budget even easier!
House Flipping Risk #3: Bad Location
Real Estate is all about investing, so make sure you do your homework! Making sure your house is in a good school district and good neighborhood will make selling it easier! If you have a house in a bad school district it can make it hard to sell and buyers may pass for a home in a better area. Ensuring that is has easy access to highways and shopping centers will make the flipping your property easy.
House Flipping Risk #4: Not having Funding
Not having funding in time for a flip can be frustrating, And Can be a deal killer. That’s why Prime Plus Mortgages Flip Loans perfect for house flipping. Flip Loans are made with house flippers in mind. Prime Plus Mortgages loans are faster, and have lower rates than ever. Hard Money Loans make getting approved fast, and getting your funding even faster than traditional banks. Learn More about our One of a Kind Flip Loans Here.