House Flipping Can be Successful or a Complete Flop
Flipping houses is not for everyone, but there are many who give it a try and really make it work for them.
I just talked to a lady the other day who purchased a house in the Okemos area. Her goal is flip that house and sell it in two years to make a substantial profit.
I also have a neighbor who flips homes as well. He lives directly behind me and this guy flipped this house about two years ago. He sold the home and made thousands of dollars by flipping it.
Many people don't realize that flipping homes is a business and it takes a lot of work. You need to plan everything out and have the knowledge to be very successful.
According to investopedia.com:
The first, best piece of advice is to limit your financial risk and maximize your return potential. Put simply, don't pay too much for a home (by knowing what it's worth) and make sure you also know how much the necessary repairs or upgrades will cost before you buy. Having that information, you can then figure an ideal purchase price.
Just keep in mind that there are a lot of things to consider when flipping houses. The one thing you don't want to do, is make mistake after mistake and end up in the poorhouse.
Top 5 mistakes according to investopedia are:
1. Not enough money.
2. Not enough time.
3. Not enough skills.
4. Not enough knowledge.
5. Not enough patience.
All 5 mistakes that you don't want to make that's for sure. And think about this, if you don't have any skills like plumbing, electrical, drywall, kitchen remodeling, just to name a few, then you would be stuck with a huge money pit problem.
My suggestion would be, do all of the home work before deciding to take on something that could end up costing you hundreds of thousands of dollars.
Take a look at really good information from investopedia.com.