Are you interested in getting into flipping houses? As a potential investor, it is important that you do plenty of research before purchasing a home so you can maximize your chances of flipping the house at a profit. You should also look into fix and flip loans in Roswell, GA as a means of funding your purchase.
Here are some tips to help you find houses that are good candidates for flipping.
Carefully consider the neighborhood
There are a few major issues to consider when analyzing the neighborhood: the school district, the local amenities and the general curb appeal of not just the home you want to purchase, but the other homes in the neighborhood as well.
With regard to curb appeal, you should remember that while you can improve your home’s curb appeal, you cannot change the rest of the neighborhood. It’s always a better bet to buy the worst home in a good neighborhood than a nice home in a neighborhood that otherwise leaves something to be desired. Look for well-maintained front yards and home exteriors, well-kept front porches and stoops, even sidewalks, operable streetlights and a general appearance of pride in the neighborhood. Consider also amenities such as parks, green spaces, libraries, recreation centers, nearby shopping, good walkability, convenient dining and nearby public transportation.
Look at market statistics
Several market statistics will help you determine the potential for your investment. It’s always important to look at comparable properties. These are properties that have similar characteristics to the property you intend to purchase. Analysis of comparable properties will give you an idea of a price range and what you could realistically sell for after fixing it up. Only use comparable properties that have recently sold.
Property taxes are another issue to take into account, because they add to the costs for the investor. Higher property taxes might be a deterrent to some buyers. You’ll need to include taxes in your property evaluation.
Days on the market is another factor to consider—the fewer the days the home has been on the market, the lower the costs and the higher the ROI. The more days, the less it will sell for.
Check the condition
It’s important that you know exactly what you’re getting into with regard to the condition of your home. Sure, you’re going to be fixing up the property, but there are certain issues you’re going to want to avoid at all costs, with foundational and structural issues being chief among them. If you have uneven floors, large cracks or a sinking foundation, this will add a lot of time and expense to rehab and make it harder to turn a good profit.
You should also avoid outdated layouts (closed-off spaces or low ceilings), narrow kitchens that have load-bearing walls (preventing you from opening them up), too many bedrooms paired with too few bathrooms and anything else that might not be easy to fix.
To learn more about the many issues you will need to take into consideration when preparing to flip your first investment property, we encourage you to contact Silliman Private Lending today. We’d be glad to tell you about your options for fix and flip loans in Roswell, GA!