You think you are ready to flip house? You have been watching tv shows and you like excitement. I don’t blame you for wanting to jump right in and make some money. However, you should do your research prior to flipping a house. You have to identify your many things prior to flipping a house such as a condo, townhouse, a house and identify your target market. Personally, I prefer to flip condo’s.
Condo
When flipping a condo you only have to worry about the interior. Usually, condo’s appeal to couples and small families. Flipping a condo when done correctly can yield the most return. Condo’s value goes up based on design, view and neighborhood. It is important to buy a condo in an up and coming neighborhood with a nice view then to buy a condo in an established neighborhood with a nice view. When renovating your condo you will find it the cheapest out any type of house investment. When a tenant is vacant you can spend minimal time maintaining the condo.
Townhouse
A townhouse offers the same amenities as a condo except the space is usually suited for a mid to large family. On some occasions you may be able to market the home a young professional, but more often than not you will appeal to mid to large families. When flipping a townhouse you have to account for amount square footage. Townhouses are usually three times a big as a condo space. There is no one size fits all solution for marketing a townhouse or picking a design style you have to do you research and talk to an agent.
A House
Flipping house is the most expensive and usually takes experience. When owning a house you have to factor in the curb appeal as well as the interior of the house. Maintaining the curb appeal when you do not have a buyer can become expensive and can cause a house to become liability or cut heavily into your bottom line. Make sure you have someone or a few prospects in line prior to purchasing a home.
Identify your market
If you have a specialty make sure you stick to it. If your specialty is young professionals then make sure you stick to it. You can grow your money with the caliber of the young professional. Now the importance of establishing your niche. As an amateur investor the people you get along with the most are usually your market. You can never do too much research. Extra knowledge always comes in handy.
I choose to leave off co-ops because they are the hardest to flip and are not usually worth your time. Make sure to due your research. Good luck!