Why Not to Flip That House.

[Sammie]

Whenever you're getting involved in something new, it is as important to look at the cons as well as the pros.. I'd like to add a few cons.. if you have some, please also post them here. I am a successful Real Estate Investor, so by all means, don't take this as "Don't Do It" Just as.. think it over first..

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You’ve heard all about it! You’ve seen it on TV, it looks so simple, so easy! What a fabulous way to earn some fast cash!

Believe it or not, there is a bit more to flipping a house for profit then you may have seen on television.

Here are just a few tips, that you might want to watch out for, or at least keep in the back of your mind while you are on your way to making all of your dreams come true with your next real estate flip. Now I don’t want to discourage, I just want to make sure that we all take off our rose colored glasses before we take that big plunge and buy that first house to flip.

You own this property.

That may sound like a dream come true, and often is, however, it can become your nightmare turned reality. Many things can go wrong here.

• You work on the inspectors schedule for any new additions or remodels, if the inspector is out of out of town, or ill, maybe on vacation, well so are you.

The longer a flip takes, the more money comes off of your bottom line.

• The weather can be one of your biggest enemies here, when’s the last time you painted a house in the rain?

• Your contractors may also walk out, or just be unprofessional and slow, be extra sure you seriously check out anyone you hire before money is handed over and work is started.


Tax Audits are not pretty!

• Think about this one, you’re buying, you’re selling, you’re remodeling, you’re doin’ thing’s man! Take a moment and visualize the tax return for just a minute or two before you get to far ahead of your self here.
• Moving large amounts of money often is a definite reason for closer examination, in addition to the constant transfer of property ownership, you’re nearly asking for an audit.

[bartongrl1]

I was just going back through the old posts and this one definitely caught my eye.

There is an awful lot of great information in this post, information that everyone needs to consider before starting out on a house flipping tangent.

So, I have bumped this post to the forefront so that anyone, like me, who may have missed it, gets a chance to read up on this again.

[beangel40]

Thanks you so much Bartongrl for bringing this one back there is a lot of good advice in there for someone looking to flip or just buy

[bartongrl1]

You are right, it is very informative.

[aceswild]

I'm glad someone bumped this one up. I hadn't even paid that much attention to it. It is some good enough and I'll remember to keep this bookmarked.

[bartongrl1]

It is a very informative piece of information, and I thought it needed to be put back up for a while for everyone to read.

[Chas in CA]

Let's add on, "Do your homework on the neighborhood."

The neighborhood I live in is littered with failed flips because a bunch of idiots who are not from around here overestimated the desirability of these houses and underestimated the cost of repairs. The local plumbers charge about ten grand for a repipe on these houses because the crawlspaces are real low. These houses were built without floor joists -- just tongue and groove 2 X 6 decking directly on the girders -- and God help you if a bathroom subfloor is rotted out and has to be replaced.

So now we have all these vacant houses with fresh paint and dead landscaping because, guess what? These houses did not come with in ground sprinkler systems either, and most out of town flippers do not want to come down every afternoon to do the watering.

Yes there are a lot of pride of ownership houses in my neighborhood -- like mine. But these houses are not worth fixing unless you plan to live here long term.

So folks, before you buy, do your homework.

Chas