Top 7 Things to Look For in a Fix & Flip Property
November 30, 2021
As with all profitable ventures, you often seal your profit when you buy a flip and fix. Your lender also wants you to make as much profit as possible. When you know what to look for in a flip and fix property, you’ll be more likely to choose a property with the maximum profit potential. If you can swing that, your lender will be more likely to approve your loan, and you’ll be in the best position to flip your property quickly. According to the experts, here are the top seven things to look for in a fix and flip property.
First, consider the area where you want to buy your fix and flip. What might be a good investment in one neighborhood might be a poor investment in another. Your fix and flip should be located in an area where the neighborhood is improving, not where it’s in a state of decline.
This is where you might want to enlist the help of a real estate agent. You’ll want to acquire comps on all the recently sold properties within the last year. Properties sold within the last six months will be even more relevant. Look for similar properties with similar features. Your real estate agent will be able to pull up this data quickly, but if you choose to go the DIY route, you can access this information online.
If your potential property has certain unique features, this could make it more attractive to potential buyers. Look for features like crown molding, built-in cabinetry, skylights, fireplaces, and more. While some of these features may not make the property more valuable to an assessor, they will certainly make it more appealing to your future buyers.
4. Employment Opportunities
Look for properties near large employers such as Amazon, FedEx, hospitals and universities. This is where new employees will need to move to and they’ll be looking for a home to buy near work.
5. Structural Integrity
Avoid unforeseen—and costly—circumstances that will blow your budget. Invest in a structural engineer report that will uncover things like cracked or sinking foundation and more.
6. Within Budget
Make sure you purchase a fix and flip that leaves you with plenty of cash to finish the work, and then some. Don’t make the mistake that many homeowners do and get emotionally involved with a house. Remember, this is an investment, not a forever home for your family.
Review the history of the property that you’re thinking of buying. If any strangeness went on, like crimes, this may legally need to be divulged to potential buyers, which could turn off some good leads. A simple online search of the address will uncover relevant news stories.
Make sure you tick off all the items on this list before making a final decision on a fix and flip property to buy. Doing so will put you in the best position to make a tidy profit.
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