How To Find A Good Wholesale Investment Property
Even when the real estate market is slow, it is quite possible to make money flipping houses if you know how to find houses that will leave you cash on the table.
These tips will help you find good investment properties.
Obviously you can never go wrong when you buy your houses low.
These few points will help you qualify a house as a good investment.
1) Extent of repairs
Wholesale houses mostly need repair.
You must determine the depth and cost of such repairs.
If you find that just simple fixes are needed, it might be a good deal.
Unexpected or major fixes can take all your profits.
2) Budget
Can you fix it and stay within your estimated budget?
Every now and then, it possibly will be compulsory to perform an inspection even for a house that needs repairs to find out if you might need to do structural repairs such as plumbing, changing walls and so on.
3) Time frame
Can the changes be completed within an acceptable time-frame?
Will the changes increase the value of the property to make it more marketable?
Speed is necessary when flipping houses so costs remain low.
The goal is to spend as little as possible put your money in your pocket and move on to the next deal.
4) Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it may possibly be necessary to assess the type of rehab that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.
5) Neighborhood
You need to avoid war zones or very low priced areas.
You must also stay away from expensive neighborhoods when flipping houses.
Staying within the medium price range will not only give you more deals, but your properties will be more marketable.
Does the house match with most houses in the neighborhood?
Does its size compare with other similar houses?
These things will make your house harder to sell and eat into your profits.
Stay within the average for the neighborhood to sell faster.
6) Comparable sales
Are comparable houses selling at a price that can leave profits for you?
Even thou you might think you are buying low, comparable sales might prove you wrong.
It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.
7) Demand for the property
Even in a depressed real estate market some neighborhoods are more marketable than others.
Is it within easy access to services like shopping, schools, recreational facilities, and others that make it more appealing to house buyers?
This will make it easier to sell your house fast .
Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.
Simon Macharia invests in real estate in Dallas Texas and runs his business from a real estate investing website that also automates his business. Click here to find out how to can automate your business and make more while spending less time and money.
Article Source: How To Find A Good Wholesale Investment Property
