House flipping is still a profitable way to invest in Portland Oregon real estate, if you know what you’re doing. I’m going to share one of the biggest mistakes prospective home flippers make and how to avoid it.
Choosing the Wrong Portland Home to Flip
Nothing will make your venture into the world of house flipping a bigger nightmare than a finished product that will not sell. To avoid this, learn all you can about what’s currently selling the fastest and for the most money in your real estate market.
It doesn’t mean you have to pick expensive homes in up-scale neighborhoods. In fact, those may be the worst properties to try to flip, depending on the market. Typically, there are houses you can flip for profit in every price range. The bigger the risk the bigger the reward.
5 Things To Avoid When Flipping A Home
The things you need to avoid when buying a home you’re planning to flip are basically the same things you would avoid if you were purchasing that same home as your primary residence. Here are three things to avoid when choosing a home to flip:
- Bad locations. Deterrents that would make living in the home undesirable such as nearby railroad tracks, cluttered shopping malls or busy roads.
- Crazy floor plans that cannot be easily fixed in a quick and inexpensive remodel.
- Homes with major structural damage. Getting a home inspection is the best way to avoid this. However, if for some reason you cannot get a home inspection, always make provisions in your operating expenses for unexpected major repairs.
- Don’t be the biggest home on the street. If you want top dollar on the resale, being the biggest will make it hard to appraise.
- Don’t be the ugliest home on the street. Its okay if the home is run down and in need of TLC. But make sure the home has architectural features that will appeal to buyers.
Remember, in house flipping, the money is made in the purchase. You can fix up a home to the “nines,” but if you did not buy the home at the right price, then making a profit will be nearly impossible.