Here are 7 important thing to check when buying houses.
Obviously you can never go wrong when you buy your houses low.
These few points will help you qualify a house as a good investment.
1) Extent of repairs
Wholesale houses mostly need repair.
You must determine the extent of repairs needed and estimate how much it will cost.
If they are just light repairs, then the deal is probably good.
Unexpected fixes can east up all your profits.
2) Budget
Can you rehab the house within your budget?
On occasion, it might be compulsory to perform an inspection even for a house that needs repairs to find out if you might want to do structural repairs such as plumbing, changing walls and so on.
3) Time frame
Can you complete repairs within a short time?
Will the changes increase marketability and selling price?
Speed is a must when flipping houses to keep costs low.
You must aim to spend as little as possible, make your profits and proceed to the next deal.
4) Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it could be necessary to assess the type of rehab that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.
5) Neighborhood
You need to avoid war zones or very low priced areas.
You must also avoid high end areas when flipping houses.
Staying within the medium price range will not only give you more deals, but your properties will be easier to sell.
Is the home a good match with other homes in the same neighborhood?
Is it too small or too big compared to the other houses?
These things will make your house harder to sell and eat into your profits.
Stay within the median in that neighborhood to be most safe.
6) Comparable sales
Are comparable houses selling at a price that can leave profits for you?
It might seem like you have bought it low enough, but comparable sales in the area might prove you wrong.
It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.
7) Demand for the property
Even in a low housing market, some neighborhoods are more marketable than others.
Is it near important services like schools, hospitable, shopping, recreational facilities and others that make it more appealing to buyers?
This will make it easy for you to sell the house fast.
Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.