I am seriously considering flipping homes:
1. What are somethings that I should think about when doing it?
2. How much do you think that it would cost to install a bathroom? I have seen some pretty nice houses that could sale for more if it had a second bathroom.
2007-07-30 12:24:29 · 6 answers · asked by Andre L 1 in Business & Finance ➔ Renting & Real Estate
1. I'd have to say first of all is a adequate knowledge of what you plan on doing. AND have a group of ppl to deal with every aspect of flipping the house: from purchase to construction, to landscape, to sale. It is a lot of work and more than most ppl realize. I see all these shows with these ppl doing it and some not know what the hell they've gotten their selves into. Remember the Real Estate market is funny. It fluctuates and can leave you with a house you can't sell. Have a plan, have a plan, and have a plan..
2. Um.. as for installation of a bathroom. It's very hard to say b/c there's so many variations that can be made. Size, toilets, sinks, and bathtubs and fixtures all add to the price.. It all depends..
2007-07-30 12:37:03 · answer #1 · answered by dablksmith 2 · 0⤊ 0⤋
In this market, use great caution when considering 'flipping homes'. While the late night infomercials make it sound easy and immensely profitable, reality dictates otherwise.
The real estate market is soft, and you could easily find yourself investing more in a house to flip than the market will bear.
If you are considering adding a bathroom where none exists at the time, you can easily spend $15,000 to $20,000, assuming you have all the work done by others. Remember, there is no plumbing there, and they're going to have to dig through walls to get what is needed in place. Don't forget as well that, once you install a bathroom, some other existing room in that house will disappear.
2007-07-30 19:33:01 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
First, you better be able to actually purchase any home you intend to flip, or walk away from the deposit. The days of putting $5,000.00 on a $500,000.00 home and flipping the home for $600,000.00 are over. Flipping was a major cause of the real estate bubble. Lenders now want 10% - 20% down. If you walk away from that contract because you couldn't flip it, then you walk away from from the down payment - it's not returned to you.
Second, home proces are falling in almost every market. There are a few exceptions, but the lessons of the real estate bubble are not lost on lenders or buyers in those markets. You still have to be prepared to by the home or walk away from the deposit.
2007-07-30 20:06:55 · answer #3 · answered by mcmufin 6 · 0⤊ 0⤋
1. there are two major problems in the business -- finding houses to take over and finding customers who'll pay enough to make it work.
2. you want the Means Guide to Construction Costs. Check your local library for a recent copy. Use telephone or Internet as many don't have this. Directions for use are in the Guide.
GL
2007-07-30 19:30:24 · answer #4 · answered by Spock (rhp) 7 · 0⤊ 0⤋
1. bluestone looks nice for indoors and outdoors, good landscaping is a plus, restoring is cheaper than replacing, close-out tile can maximize your budget, and measure once; cut twice.
2. having a regular bathroom(s) AND a master bathroom will increase your budget as well as a jacuzzi tub in the master bathroom.
2007-07-30 19:34:59 · answer #5 · answered by pmemica 3 · 0⤊ 0⤋
The short answer...
If you can't buy it for 70% LTV INCLUDING repairs, don't buy it (even cheaper would be better, especially for a beginner). Stray from that rule and you will be going to a seminar at the School of Hard Knocks.
2007-07-31 00:27:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋