Understanding the Risks When You Flip a Home

If you want to flip a home, there are certain risks you need to be aware of before you get started. Understanding these risks will help you make more educated purchasing decisions when you are looking for a property to flip. 

 

Damage Under the Surface

Some homes may have more damage under the surface, such as mold in the walls, which makes them even more expensive to repair. While the repair is necessary to sell the home, the cost of paying for the labor and materials will cut into your profit margin. The repairs will also affect the time line for selling the home. This means you have to hold on to the mortgage longer, too. Carefully inspect a home for issues like this before buying it to flip, and do not ever buy a home sight unseen.

 

Finding the Right Crew

Unless you are a general contractor who can do the work yourself, you are going to want to spend some time finding the right crew. A crew will cost you lots of money, and you will want to be sure it can do the work well, and quickly to preserve your time line.

 

Listing and Selling

The longer a home is on the market, the more mortgage payments you will have to make, which breaks into your profit margin. Line up potential buyers early.

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