House Flipping - Know Your Exit Strategy

If the number one principle of house flipping is "Yourepair with an eye more towards the cosmetic fixes
make your money when you buy the property"like paint and landscape that will give more curb
number two should be "Know your exit strategyappeal to the buyer.
when you buy".Obviously in both cases you should bring everything
You should have a plan for how you are going to sellup to code and fix any structural issues. But if you
your house before you make your final decision tohave done your homework, these shouldn't be a
purchase the property. This will also determine howproblem with a quick flip where you have already
much or what you will do to the property in the longfactored that into the profit potential.
run.One of the other choices to sell your property can
Knowing what you are going to be doing with thebe the lease option. That will fall somewhere in
property, for example, selling for profit, renting, usingbetween the "quick flip" and the "hold for two years
for yourself, will direct you as to how much you arestrategy". You will want the home to be problem
going to fix and the amount you want to spend on it.free for rental years, at least, so you don't keep
Obviously if you are buying to live in yourself and sellgetting call backs for repairs while the home is being
later, like in two years so you can take advantage ofrented. You will repair with an eye towards longevity
tax benefits, you are going to want to make itwhile not overdoing it in the upgrade department.
comfortable for you and may spend a little more onAll in all, the better you buy the property and the
the material choices. You may even put in newmore you know about your exit strategy, the more
kitchen and bath fixtures and cabinets.profit you will make on your investment.
Conversely if you are going for the quick flip, you will