Home Inspector | 3 Mistakes to Avoid When Flipping Houses
One of the major highlights in the real estate industry has been house flipping. House flipping is an investment strategy where the investor buys property to resell for profit. The profit can be earned by either reselling the property when the median home prices are on the rise, or when the investor makes renovations and invests capital in the property to improve it.
While lucrative, and one of the best investment options available in real estate today, house flipping could end up costing you a lot. In some cases, the investor may have to resell the property at a loss to cover the damage from the bad investment. Here are three mistakes you should avoid when flipping houses.
- Jumping to Invest
No matter what type of investment you make, it’s never a good strategy to jump into one without thoroughly considering the costs. This holds especially true in real estate, where bad decisions could end up costing you a lot.
Acquisition cost, holding costs, utilities, and taxes should always be considered before investing in a property. Costs of renovations and taxes from capital gains should also be evaluated before making the decision.
- Being Trigger Happy
An inexperienced flipper will tend to sell off the property quickly once they start getting good offers. A seasoned house flipper, however, will wait for the best offer in terms of sale price and schedule of payment before making the decision.
Being trigger happy in real estate is not a good practice, and you may end up selling your home on impulse. On the other hand, a seasoned flipper will ride out the bad period as long as the costs of keeping the house doesn’t outweigh the potential profits.
- Not Getting A Home Inspection
Home inspection remains one of the most important aspects of flipping houses, and it’s one cost you should not avoid. A home inspector not only makes sure that all the systems and structural elements of the home are in good shape, but also guides you on improvements that can add to its value.
Beryl Engineering & Inspection has some of the most experienced home inspectors in Tampa whom can help you ensure that your house flipping investments bring great returns.