Flipping Houses For Dummies

To successfully flip houses, you need to recognize the signs of a promising investment and the homes you need to completely avoid. Use these helpful guidelines for making the right cosmetic repairs and properly staging your home so you get the quickest flip and biggest return on your fixer-upper.

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Spotting an Attractive Fixer-Upper House

When you’re flipping houses, look for the buried treasure that offers an opportunity to turn a handsome profit. To succeed in finding this potential gem, you may need to change the way you view houses. This could mean getting the ugliest house on the block. Be on the lookout for these factors that qualify a home as an attractive fixer-upper:

• Located in desirable neighborhood with good schools

  
  



• Ugly duckling in the neighborhood

  
  



• Vacant

  
  



• Priced to make money for rehabbing

  
  



• Good bones — good structure

  
  



• The return on investment is 300 to 500 percent of the cost of repairs

  
  



• Taxes are owed on the property

  
  



• Absentee landlord

  
  



• Probate property

  
  



• Foreclosure property

  
  



• Owners facing bankruptcy

  
  



• Owners getting divorced

  
  



• The work needed is something you’re capable of doing yourself

  
  



• Documents related to house turn up nothing unusual

  
  



• Reliable title company verifies paperwork

  
  



• Great floor plan

  
  



• Rooms with character and class

  
  



• Hardwood floors hiding under carpet

  
  



• Roomy kitchen with an inviting layout

  
  



• Roomy master bedroom

  
  



• Two or more bathrooms, at least one of which is roomy

  
  

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Signs of a Potential Real Estate Money Pit

If you’re looking for a house to flip, you need to be aware of certain signs that a home is a lemon. You can save time and money by catching major problems right from the start. Look for these warning signs of a house you probably want to steer clear of:

• Water stains on wall board

  
  



• Water stains on ceiling and sheetrock sagging

  
  



• Foundation bulging in or out

  
  



• Mold in the attic

  
  



• Mold on walls

  
  



• Knob and tube wiring or aluminum wiring

  
  



• Rotting windows with water stains down walls

  
  



• Standing water in crawl space

  
  



• Sagging floors

  
  



• Sagging roofline

  
  



• Neighbors from hell

  
  



• More cats than humans in residence

  
  



• Neighbors have Dobermans that eat red meat

  
  



• Located in a high-crime district

  
  

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Quick Cosmetic Repairs for Flipping Houses

The ideal house for a flipper needs a cosmetic job, or quick flip, instead of major repairs. This usually involves a deep scrubbing, decluttering, and a little makeup to improve appearance and attract prospective buyers. Here are some top makeover steps to transform your fixer-upper:

Painless landscaping makeovers

• Trim trees and brush

  
  



• Pull weeds and dead plants

  
  



• Plant fresh shrubs and flowers

  
  



• Declutter the yard

  
  



• Mulch the flower beds

  
  



• Mow and edge the lawn

  
  



• Fill driveway and walkway cracks

  
  

Quick curbside facelifts

• Remove any window air conditioners

  
  



• Repair or replace windows and screens

  
  



• Apply a fresh coat of paint (except on brick)

  
  



• Paint the front door and threshold

  
  



• Repair and paint or replace the gutters

  
  



• Replace the front and rear storm doors

  
  



• Replace exterior light fixtures

  
  



• Replace the mailbox

  
  

Interior beauty tips

• Thoroughly clean and scrub the house, including the windows

  
  



• Replace all wall-to-wall carpeting (unless it’s covering a beautiful wood floor)

  
  



• Apply a fresh coat of paint (neutral tones only)

  
  



• Repair doors and doorknobs

  
  



• Install new window blinds

  
  



• Install or update light fixtures

  
  



• Replace all faceplates (on light switches and outlets)

  
  



• Replace heat registers

  
  



• Install new smoke detectors

  
  

Quick and cheap kitchen makeovers

• Install a new stainless steel sink

  
  



• Install a new faucet

  
  



• Replace damaged or out-of-date countertops

  
  



• Paint or refinish the cabinets and install new hardware (knobs and handles)

  
  

Bathrooms brush ups

• Install a new vanity (cabinet and sink)

  
  



• Install all new fixtures

  
  



• Replace the toilet seat

  
  



• Replace the shower curtain

  
  



• Caulk around sinks, toilets, tubs, and showers

  
  



• De-mildew the shower or bath

  
  

Cellar sprucers

• Sweep the cobwebs out of the rafters

  
  



• Seal all cracks in the walls

  
  



• Whitewash concrete or cement-block walls with a sealing paint

  
  



• Paint the floor using a gray or beige

  
  



• Stuff pieces of new insulation between the joists where the joists meet the outside wall

  
  

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House Staging Tips

Once you’ve done any needed repairs or renovations to your fixer-upper and it’s time to get the house on the market, you have to properly stage (showcase) the home. Even a good home, if not well-maintained and clean, can look disheveled. You want prospective buyers to envision themselves in the house, so use the following checklist to perfectly stage the property:

• Mow and edge the lawn (yes, again)

  
  



• Sweep the entryways and lay down new doormats

  
  



• Scrub-a-dub-dub that house right before showing (especially the kitchen and bathrooms)

  
  



• Hide family photos, religious icons, or political paraphernalia

  
  



• Clear the clutter off the countertops (no dish drainers, knife racks, or toothbrush holders)

  
  



• Furnish rooms sparingly with attractive furniture (no vacancies)

  
  



• Keep the toilet seat cover down, guys

  
  



• Open the windows and turn on all the lights (no heavy air fresheners, scented candles, or potpourri)

  
  



• Set out attractive bouquets of fresh-cut flowers

  
  

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