Selecting the perfect property to flip is no easy feat. Depending on your market you may have too many or too few options to choose from. Regardless of which is true, it’s important to stay away from certain properties to increase chances of a higher profit. If you stumble across a potential flip with any of the following five characteristics, skip it!
They may have vintage charm, but odds are they also have a lot of features that buyers won’t be too thrilled about. Buyers are often looking for modern conveniences and layouts, neither of which can be found in houses built 50+ years ago. Purchasing a unique home directly impacts the amount of interest a home will draw. Also, there are several safety concerns, like lead paint, which often come standard with old properties. To avoid a complete structural remodel and protect your investment always choose properties built after 1978.
We’ve all dreamed of owning a house that is stylistically more interesting than everyone else’s. In our heads, it sounds lovely. On paper, it’s a different story. Unique homes tend to sell at a much slower rate than houses that fit in with modern-day trends. “Cookie-cutter homes,” as they’re sometimes called, almost always have a faster turnaround. Quirky features found in unique homes are often great conversation starters, but they tend to make for inconvenient living spaces.
Main Road Homes
Homes located just off the main thoroughfare are fantastic for commuters but awful for families, elderly couples, and introverts. Increased noise and traffic congestion are significant turn-offs for any of these groups, which means your potential buyer group is severely diminished. Add to that the fact that central road homes usually net much less than the same house located a few blocks into a neighborhood, and you can see why you’re money is better spent elsewhere.
Bad Block Homes
Location, location, location. There is a reason this phrase is known by so many. It is essential for long-term growth to purchase homes in prime locations. Look for areas close to major roads, schools, and public transportation to open the sale up to more options. Compare the rent and selling prices of possible locations, including repairs and improvements. Once you have chosen your site, tailor the home to the residents of the area. For example, a college town apartment doesn’t need luxury. Keep it simple and modern to amplify profits without overcharging.