How to Pick a Property to Flip

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Watch more How to Sell Your Home videos: http://www.howcast.com/videos/183870-How-to-Pick-a-Property-to-Flip

You’ve seen the cable shows and infomercials about people getting rich flipping homes. Here’s how to get a piece of the action.

Step 1: Look for buzzwords
When searching the newspaper or a multiple listing service for a property, look for buzzwords like ‘handyman special,’ ‘as is,’ ‘fixer-upper,’ or ‘diamond in the rough.’

Step 2: Consider location
Look for houses in up-and-coming neighborhoods with low crime rates.

Tip
Avoid upper-class areas, where flipping is more difficult.

Step 3: Walk neighborhoods
Walk target neighborhoods looking for homes that appear vacant and in great disrepair. Look for poor or nonexistent landscaping, broken fences, peeling paint, old fixtures, outdated appliances—even an ugly front door.

Tip
You want a place with cosmetic problems, not structural, plumbing, or electrical issues.

Step 4: Dig deep
Look for hidden gems in the home, like beautiful hardwood floors under musty old carpeting; a gorgeous stone exterior buried under decades of grime and soot.

Tip
Look for owners who are motivated—or desperate enough—to sell for less than market value.

Step 5: Check for time bombs
Have the house inspected for hidden time bombs like termites, underground oil tank leaks, mold or asbestos, and other large-ticket problems like heating, cooling, or infrastructure defects. If everything checks out, it might be time to consider buying—and then the real work will begin.

Did You Know?
Adding basic landscaping to a home can increase your returns by 100% to 150%!

12 COMMENTS

  1. This might work in the world capital of home-foreclosure (USA) But I can assure you IT DOES NOT HAPPEN in Australia.

  2. What happened is they stopped regulating loans as much, and people started to flip houses like crazy because home loans got really cheap, and eventually we got to this point where the houses couldn't be flipped anymore and people were stuck with these loans that they couldn't pay because they though they were gonna sell the house, and this got a lot of innocent people caught up with this, there is much more to it than I can post in this comment though…

  3. Hmm, I ruined my carpet after I passed out drunk and pissed on it, then I ripped the carpet out and realized we had nice looking hardwood floors underneath lol 😛

  4. when i moved to my house the carpet was stained so we ripped the carpet out and realized we had nice looking hardwood floors underneath lol 😛

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