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Step 1
Select a property in need of minor cosmetic repair that is selling well below market value.
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Step 2
Have a thorough and complete appraisal of the property made. A good inspector can find potential problems that will cost much more than minor cosmetic repairs.
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Step 3
Crunch the numbers--the bottom line when it comes to flipping houses for profit. You must have a decent estimate of the asking price, what you're willing to offer, realtor fees, taxes, permits, materials, repairs and labor, in addition to a reliable estimate of what the home will be worth once you make the transformation.
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Step 4
Buy the property. Keep within your established budget in order to keep risks at a minimum.
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Step 5
Make the necessary repairs. This is often the most complicated step of the process, as it will stretch your patience, resources, and abilities in order to truly turn a profit.
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Step 6
Sell the property. Many investors choose to have the property staged with rental furniture and shown in an open house to gain maximum exposure. Discuss the options with a Realtor in order to determine the best course of action in your local market.
