Real Estate Sales Blog
This article will be a short one and we will talk about house flipping don’ts (mistakes).
Top 5 House flipping don’ts / mistakes
- Don’t buy the best house in a bad neighbourhood. You CAN out price the area you are trying to do house flips. Its a mistake to buy and try to flip a property in a troubled neighbourhood where every other home on the street is in disrepair.
- Don’t ignore the warning signs! If you are first timer in flipping a house don’t buy a house with water damage or foundation issues. These items may look like small problems that are relatively easy to fix, or they could be complete disasters that will break your budget and lead to your financial ruin. It’s generally best to save homes that are have pretty severe problems for the moment you become a more experienced real estate investor and made at least a few house flips.
- Don’t overspend – While you certainly should buy quality materials, you need to resist the urge to buy the nicer faucet or the prettier cabinet pulls. Always buy with price and quality in mind with a close eye on the budget. Over-spending is a common pitfall.
- Don’t Let Emotions Ruin Your Purchase – Money is made at the buy, not the sell of your flip. So make sure that every single Real Estate Sales decision you make comes from a cold thinking.
- Don’t Try to handle it all yourself – Unless you are a licensed contractor, electrician, and plumber, you will likely need to hire some work out. Do what you can and leave the rest to licensed professionals. If you’re not sure flipping houses is right for you, don’t do it. It is a huge commitment and isn’t one that should be taken lightly. If the project seems to be spiralling out of control, step back and try to relax. Look at all your options and decide on the best course of action. Tackle the biggest jobs first – the things that need to be done to make the house sellable. If you don’t have enough left over in the budget to do the smaller things you wanted to do, at least you’ll have the big things taken care of and should still be able to turn a profit. You need to be realistic about this.