When I first got into flipping houses, lord knows I made my share of costly mistakes.
In case you’re interested in getting into the rehab biz, I wanted to make a quick post on how to get into flipping houses.
Note: These tips aren’t necessarily listed in chronological order.
Have Some Goals
I know it sounds cliché, but I truly think goals are crucial.
Goals give you that why that helps you keep moving forward when you go through adversity.
There are going to be inspectors and contractors that don’t show up.
Related: See How Easy it is to Work with Detroit General Contractors
There are going to be times where you think you’ve found a great deal on a house, only to find that the title isn’t clean.
There’s going to be all kinds of adversities that you’re going to have to power-through if you want to be successful.
And goals give you that reason to dust yourself off and keep going through those tough times and rough days.
What Areas Are In-Demand?
You want to get paid, so don’t forget that someone has to buy the house in order for that to happen.
You want to make that house as easy to sell as you can. The number one factor in selling is the location of the house.
Related: How to Make Your House Standout
Before you start trying to find properties, make sure you know the current trends that reveal where people are buying, and where they aren’t.
What’s the “Bread and Butter” House in Your Area?
“Bread-and-butter” houses is what I the prototypical house that gets the most demand in the area you’re going to be working in.
For example, in the city of Detroit, most people expect a brick house that has at least three bedrooms. And if it’s even better if it has a garage; attached preferably.
You’re putting yourself behind the 8-ball if you’re trying to rehab and sell a framed house with two bedrooms in Detroit.
Before you start looking at prospective houses, figure out what the bread-and-butter house is in that area.
From square footage, to the material of the house, to the desired number of bedrooms and bathrooms, you want to know what kind of properties are in-demand before you start looking at prospects.