Fix and Flip Guide for the Newbie

By shaye • July 22nd, 2010
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To fix and flip homes is not an easy job. There is no question with how much it can pay you. The issue is whether you’ll be able to successfully accomplish your first project. This business is tough for the newbie, in a way that it takes experience and knowledge to know what repairs need to be done where. You also need to estimate your repairs and to maximize that small budget you have for improvements. And for all the risks involved, brave are those who take up the challenge. Here’s a little guide to help you hurdle that newbie hump.

Befriend an appraiser or home inspector. In the business of fixing and flipping houses, it is said that you earn when you buy the property, not when you sell it. This simply means that your first project as a rehabber should be very cheap. That will allow you to take

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home most of the difference between the low purchase cost and your high asking price when you sell it. Because of this, it is important that you know just how much the property is actually worth at its current state and after you carry out the necessary improvements. A professional home inspector or appraiser can help you with this task. Inspecting and valuing houses is typically hard for the newbie.

Focus on the flame. When fixing and flipping houses, it is important that you focus on the kitchen. Some rehabbers say that to rehab a house is to fix and flip a kitchen. This particular part of the house turns on – or unfortunately in some cases turns off – the home buyer. Make sure that the cabinets are refinished. If they are in a bad shape, consider replacing them with new but affordable cabinets. Be sure to throw in some new appliances as well. No need for fancy and luxury brands. They will do as long as they are new. This same principle holds through for work surfaces, sinks, and faucets.

Fix and flip bathrooms. If there’s another area in the house where everything should be new and clean, it’s the bathrooms. When the home buyer inspects the property, he must see a new toilet and a new tub. He must also see new and shiny faucets, sinks, and shower heads. That medicine cabinet should be refinished. That mirror should be replaced. Those walls should be retiled. Everything must gleam in this part of the house.

Want more ideas on rehabbing homes? Go to where the newbie and the pro rehabber meet. Go to now.

Rehab Real Estate is a fast-growing real estate investing network that aims to provide quality education, information, training, and support to real estate investors. Our ultimate aim is to create an online community where investors can learn and develop their real estate investing skills, as well as interact and exchange ideas with their fellow real estate investors.


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