Flipping houses is a lucrative business, but it can be tough to get started. It’s not easy to find the right property or know what you need to do to fix it up and sell it for a profit. This article will go over some of the most important rules that successful house flippers follow when flipping homes.

  1. Use the 70% Rule

It is not advised to spend more than 70% of the after-repair value, which includes acquisition and any holding costs, for a flip. This is a hard-and-fast rule that can’t be broken. If you follow this guideline, your investment return will likely be greater than the 20% that most experts agree to for fixing and flipping homes.

  1. Prepare for the Costs Involved

Flipping houses is a lot of work and there are costs involved. You’ll need to pay for repairs, have cash on hand for the down payment, and cover the closing costs as well. You must know what these figures will be so that you can accurately determine if it’s worth going through with the project in the first place.

  1. Make Sure That It Has Potential

Before buying a property, make sure that its location and condition are what you’re looking for in a project. Some people will want to flip houses in a specific neighborhood or look for properties that need some work done to them. Make sure that the house you decide to buy has potential, or else your risk of losing money will go up exponentially.

  1. Have a Flip Team at the Ready

When you flip a house, it can easily turn into a very stressful situation. It’s important to have a support group in place that will be there for you when things don’t go according to plan.

  1. Find a Good Realtor and Use an Appraiser

When you’re flipping a house, don’t do it alone. It’s best to find a good realtor who can help you sell the property at the right time and for the right price. This will be one of your most important partnerships, so make sure that you find someone who can provide the most value up front.