Don't Make These Mistakes

[missmanors]

One of the most common mistakes a potential flipper makes is simply not having enough money to cover all expenses. Not only must you have the cash to buy the house in the first place, but must have enough to cover interest on a loan; or in the case you've purchased the home with cash, you still may be responsible for paying property taxes, utility bills, etc. Be sure you factor in these expenses before you decide to buy your flip.

Another mistake that is often made is not having enough time or skill to renovate a house. Flippers often believe that they'll be able to have a house ready for flipping within a short amount of time, then find that there is much more renovating needed before the house is actually ready for sale. Of course not having all the skill necessary to finish the job is another problem you could potentially run into. If your expertise is only plumbing, for instance, you could have a lot of problems if you need to hire an electrician, concrete guy, etc. This can definitely eat up your budget in no time at all.

[nicohohman]

As you first start off with rehabbing and flipping, I would add anywhere from 20%-30% on to your initial budget and schedules. That way, you will cover yourself for any unexpected happenings.

The more you do it and the better you get at it, you can reduce these figures to 5% - 10% added time and money.

I would always keep some sort of contingency on every project because you never know what could come up. And if you don't use the contingency, that's just more money you saved.
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[flippinout]

Thats excellent advice and new flippers need all the advice from you pros that they can get in order to make a profit on their first flips.

New flippers dont yet know all the ins and outs to flipping and you guys can sure make it a lot easier on them by offering all this great advice.

Thank you.