Choosing to flip residential property can be a lucrative business and the best time to do so is while property prices are low. Presently more people are selling than buying; causing property prices go down extensively, creating the perfect time to obtain the best properties for the best price. There are still great bargains out there from our housing crisis in 2008 although things are looking up, making it easier to sell your new project.
One way to flip a house that creates the greatest benefit is to buy the house and live in it two years. This method allows you to take advantage of tax savings. The only disadvantage in keeping the property for this length of time is that there could be a downturn in property prices over that period.
Other ways to manage your flips are to fix and sell immediately or alternate between your flips by living in one for two years, then fix and sell the next one and alternate as you see fit. There is no set way to manage your business, just use the technique that works best for you. Remember that the market does fluctuate, and have some ideas ready in case your property does not sell immediately, such as renting or living there until the market changes.
Selecting that perfect house to flip for the ultimate profit is a goal that can be achieved with diligent research of the neighborhoods in any area. Just following some simple guidelines using this research will help you find the right money maker for you.
The first thing to do is find the best neighborhood that could possibly have something within your price range. Find the worst houses in that neighborhood that can be remodeled at a reasonable price. Keep in mind, the property must be in a good neighborhood for the optimum benefit. Location is what will drive the highest price for your efforts.
Some of the criteria to determine the right property are:
• Make certain houses in the neighborhood are well kept, or are being improved.
• Check to see if there is some draw to the neighborhood, for example, shopping, restaurants, good school systems, access to freeways or public transportation.
• Purchase property near your neighborhood so that you have firsthand knowledge of the area, it also helps that you are close enough to the property to check on its progress daily during the remodel.
As a first time house-flipper finances can limit buying in the better neighborhoods, but another option is to look at neighborhoods near those more expensive areas. Some of these areas are up and coming and show many signs of attempts at improvement. These transitional neighborhoods can be ones that show new restaurants, shopping centers, and improvements on existing housing. It is well known in real estate circles that if stores such as Starbucks are being built nearby, the company has done research on the area before they moved in and believe the neighborhood is going to greatly improve.
Anyone can buy a house and flip it for a profit using these tips; all that is needed is the desire to do your homework in selecting the right property in the right neighborhood to achieve your goal.