The idea of flipping a home is less popular now than it was a decade ago, but it’s still out there. If flipping a home is something you’ve ever thought of, here are three tips for you:
1. Remember the 70% rule. In order to profit from your purchase, take the price that the home will sell for after renovations and factor 70% of it. Subtract your renovations from the 70% and that leaves you with the maximum price you should pay for the home.
2. Remember the rules. If you’re considering a short sale or REO because of a great deal, be sure to research the Fannie Mae and Freddie Mac guidelines that restrict resale of such properties within a set amount of time from the original sale.
3. Remember the inspection. Even though you intend to flip the home you buy, you should not forgo the home inspection. You will want to know if there are hidden problems that are more of commitment than you are financially prepared for.
Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.