By: Aaron Crawford
More and more people are investing in old houses. They make the buy and then fix the house up and flip it for tens of thousands of dollars more. This is a great way to make money, sure, but in most cases you have to have some money to put into the home as well. It is costly to fix up a house, even to a moderate degree, and if you are thinking of buying a truly run down home you need to think about your finances very carefully.
You may have heard people talk about how easy it is to buy run down homes and fix them up, but the truth is that either they are lying outright or they have never done it before themselves. It is hard to make a home better and it is very expensive. And remember that there are never any guarantees that you will get the money back that you sunk into the home.
The key to a good fix ‘n flip is for you to have done the work that it takes to prepare for the fix itself. Do you know what you want to fix and what should be fixed? There are some things that will increase the value of the home and others that will have no effect at all. It is a good idea to start with the ones that will make the home worth more money. You are not going to live in this house so don’t put in extra money that you can’t get back. Just make it good enough to sell for a good profit and be on your way. This way you get your money faster and you don’t break your back fro nothing.
In order to find out what is what you need to start doing some studying. Talk to some local builders and see what they have to say. Get any tips that you can from them and write them all down. You will also want to do some heavy online research, the internet can be your biggest ally in the fix ‘ flip business, that is for sure.
And make sure that this is a project that you really do want to take on. Be aware that it is going to suck up an enormous amount of your time and energy. It can take months even years to get a house up to snuff, especially if you already have another job. Where is all this time going to come from? Think carefully and talk it over with your family to see if this is really the right decision for all of you.
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