Buying, remodeling, and selling a home - also known as flipping - can be a profitable business. But, as with all businesses, it requires you to adhere to certain practices in order to be successful.
Here are some tips to follow that should help guide you:
1. Pick a house with "good bones" - this means make sure the roof, furnace and a/c, water heater, windows, electrical, and plumbing are in good shape. This can all be expensive items to deal with and a mistake can take you from a profit to a loss. As with all businesses, the idea is to make money.
2. Control your urge to gut the house - people want to take pride in their remodeling efforts, but overdoing it can lead to overspending and loss of profits. Do what's necessary, but don't overdo it!
3. Treat it like a business - as an example, if you have a mortgage on the house, time is of the essence since you will have the ongoing financing expenses from the interest on the loan. We all know that in the early stages of a loan, the payment is almost entirely interest! If you paid cash, you still have the cost of having your money tied up, so use sound money management techniques.
4. Learn about a Sheriff's Sale - There are times when good bargains can be had, but you have to know what you're doing. It costs nothing but your time to attend one, and it's the best way to learn the ropes.
5. Know the housing market in the area where you are considering buying. What you think is a "deal" can turn out not to be if your "deal price" is not in line with the market area. Again, treat this like a business. There are people who have made a good income from flipping and those who have lost money. The difference is your knowledge and approach.
To search for homes, visit: http://homesearch.toledoareahomes.com...
Kelley Knitz has been a RE/MAX agent for over 26 years and is in the RE/MAX Hall of Fame and is a long time member of the Toledo Board of Realtors Million Dollar Club.