My Current Project: Flip That House  

7/24/10 Update: The newest project: House #5

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My current project is to flip that house and expand my real estate investing business. Since the economy has forced me to rethink my career direction and I am now working full time on flipping houses. I believe I can flip this house even in the current economic state we are in.

Why do I think I can flip that house?

• I have already done it. Even though a lot of people told me it couldn’t be done, I did. So on top of that being a confidence booster I learned a thing or two I can apply this time around. Although every investment is different the underlying skills needed to flip this house like budgeting, scheduling, project management and negotiating, remain the same.
• People are still buying homes. Fueled by low interest rates and the best buyers market in the last decade, people know it is a great time to buy real estate.
• Although there are some bargains out there many of them are “projects”. Just like this one, there are houses out there that can be bought at 40-60% under market value but need $15-20,000+ worth of work. People looking for a place to live don’t buy these – who wants to buy a project? So even though there will be lower priced properties in the market because of their condition many people will not consider them.
• Everybody likes a nice house. When I am done with this house it will look better than anything else around it, it will be move-in ready and it will be priced lower, which leads to my next point.
• If I buy it right and fix it right I can (have to) price it lower. So now I will be offering the nicest house in the neighborhood at 10% under market value. I expect this to be a strong marketing strategy.

House #2: Flip The House Pictures
The "before" pictures.

House #2 Update: Final Pictures
The "after" pictures.

House #3: Flipping Homes Continues
The next project gets under way...

House #2 Break-In! - How to deal with a break-in at your foreclosure property investment...

House #2: Creating a Budget and Schedule of Work for House Flipping...

House #3: Final Pictures and Staging - How to flip a house in this market? I am giving full staging a try...

Property Investment Update: House #2 and #3 - Just wanted to give you an update on the status of house #3 and house #4...

House #3: Under Contract! - marketing and negotiating...

House #3: Final Analysis- profits and lessons learned...

House Flip #2: FHA loans and Inspections

House #4: New Rehab Real Estate Project

House #4: Fix and Flip “Before” Pictures

House #4: Final Home Flipping Pictures and Video!

Flip That House #5: Making Money With Bank Owned Real Estate

My house flipping plans consist of purchasing up to three properties at the same time that can be bought in the $35-50,000 range and that once renovations are complete can be sold in the $100-130,000 range. What is more important right now it’s not just the price that I can buy them for but the comparable sales in the neighborhoods where I find these properties, this is an important piece of investing advice for flipping houses.

Comparable sales are crucial first because they are how I start to determine what the market value of the property is therefore allowing me to see if I am buying at a good price or not. More importantly they are what an appraiser will use to appraise the house I am trying to sell once I find a buyer.

Right now we are in a very conflicting appraisal market where appraisers are under pressure to use foreclosures and distressed sales as comparable sales. This is scary stuff!! This is why I pulled out of two other properties I had under contract. All the recent sales I found nearby those properties were foreclosures, therefore I did not want to risk it.

In the links above I will go into the specific details as I try to flip that house and share what works and what doesn’t and what I learn from it. At the same time I will discover and show you the viability of creating both a house flipping business and a full time real estate investing business. Hopefully you can use some of this investing advice in your own investing journey.

Please check back soon for more flip a house updates or subscribe to my blog and RSS feed so you get the updates when they are posted. You can also receive new content through email.

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