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Ready to flip your first house? This guide is a must-read.

Flipping a house can be both exciting and intimidating, especially if you’re a first-timer. That’s why we’ve put together this comprehensive guide to help you navigate the process and avoid common pitfalls.

Paying high prices

The goal of house flipping is to get a bargain and sell it for a higher price after remodeling. The whole project won’t be feasible if you pay too much for a property. Therefore, you shouldn’t spend more than 70% of the after-repair value minus the repair costs. 

Not being accurate with cost estimates

Before buying a property, make sure to visit it with your chosen contractor. They should provide a price estimate for the repairs. An accurate price estimate will determine whether the house flipping project will bring you profit.

Not understanding that house flipping is time-consuming

Before you even decide that you want to do house flipping, calculate whether it will be feasible for you. You need to find the right property, manage contractors, and schedule inspections. After the renovation is done, you will need to put effort into selling the property. The process can take a lot of time, so you might earn more money if you stick with your day job.

House with an awkward layout

Keep in mind that you can’t fix an awkward layout with cosmetic upgrades. Structural work can be pretty costly, so be sure to pick a property with a good layout. A proper home layout should be functional, and every room should have a purpose.

Not researching the market

The best way to start researching the market is to explore the properties listed for sale in your specific area. Explore the price ranges and get to know more about the types of properties sold in the area and which ones are high in demand. 

Bold decor choices

One of the biggest mistakes house flippers make is following their personal taste and preferences. While you like bold and outstanding color choices, they might not appeal to buyers. A potential buyer should be able to project their style and personality onto the space. Therefore, the best solution is to opt for neutral materials and colors that appeal to everyone.

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