How to flip a house

Will get some tips on how to flip your first property

Difficulty: Challenging

Instructions

Things You'll Need:

• Time
• Money
• Motivation and dedication

1. When you are looking for your first house to flip you should pick the ugliest house on the block.

2. When you rehab the home, don't go overboard. Make your house competitive with the rest of the market in that area. Going overboard will cause you to step up your closing price and your home will sit on the market longer. Doing this will cost you (holding costs) in the end so be careful.

3. Holding Costs: Cost of Insurance, Property Taxes and Utilities. This will cost around $3000 for every month the house is on the market so don't over price your home.

4. Start with a small house at first(cosmetic work only) and work your way up.
   Cosmetic work includes painting, new carpet or hard wood, new lights and faucets, ect.

5. Things you will need before you make your first offer:
   
   -Financing for the home, holding costs and repairs
   
   -A repair and renovation plan.
   
   -Repair and renovation costs
   
   -Completion schedule
   
   -Reliable workers and contractors
   
   -A date to put the house back on the market

6. Get a team of professionals
   
   -Real Estate agent
   
   -Financier / Lender
   
   -Accountant
   
   -Title Company
   
   -Appraiser
   
   -Home Inspector
   
   -Real Estate Lawyer
   
   -Contractors

7. Base your profit on market conditions (Increasing, Flat or Decreasing). Try for a 20% profit.

8. Finding a house (4 steps)
   
   -Buy a home in a fertile neighborhood with home older than 20 years.
   
   -Zoom in on a don't wanner (distressed property)
   
   -Inspect the property closely inside and out.
   
   -Haggle with the seller to get a better price to ensure a profit.

9. Schedule the renovations logically
   
   -Do the infrastructure first: Foundation, electric, plumbing, heating and air conditioning.
   
   -Then work on the ceilings and walls.
   
   -Finally the floors.

10. Sell your home for profit!

[CrystalR]

on 1/16/2009 You can take this one article and turn it into three, would give you an opportunity to go more in depth with the steps. Flipping house is great income, I want to be the one doing the decor :]