There are all kinds of risks you’re taking if you own a property that isn’t properly insured.
It could burn down (God forbid), and you could lose your entire investment.
And one of the worst things you can do is rely on the insurance agent to guide you into getting the right insurance.
Make sure you’re covered in the event one of the workers working on the house gets hurt on the property. If you’re not properly insured against that, you could be in big trouble if they get hurt.
Focus on Things that Add Value
You don’t want to risk wasting your rehab budget on things that don’t improve the value of the property.
Focus on the parts of the house that improve the value.
Know What Buyers Want
We want the property to appraise well, but the value is only half the battle.
It still has to appeal to prospective buyers.
If it isn’t attractive to them, you’re putting yourself at-risk of putting your money into a property that’s going to sit around on the market longer than it may have to.
When we’re about to buy a property to rehab, we try to attend the open houses of other homes on the market in that same area.
This will give us an idea of what people are looking for that want to buy property in that area.
This helps us find some little touches we can add to our property that can make it more attractive once we’re done with it.
Which of the risks mentioned in this post concern you the most when it comes to flipping properties? Leave a comment, and let’s talk about it.