Maybe you’ve seen a house you just have to buy – it’s packed with potential, it’s in a great neighborhood and it’s exactly what you want.
Even houses that sound like a dream can quickly turn into a nightmare, though.
Don’t Let Your Dream Rehab Become a Nightmare
Sometimes unexpected issues pop up, and that’s normal when you’re in the business of flipping houses. However, you have to do the right things to make sure you don’t turn this dream rehab into a never-ending nightmare that just won’t end.
Forget Zillow and Trulia when it Comes to ARV
Zillow and Trulia are famous for letting people know what they think houses are worth – but the problem is that they’re almost never accurate. In fact, they’re usually thousands of dollars away from what the homes they list are worth. You certainly can’t trust either of those websites (or any website, for that matter) to determine what your ARV will be when you buy a house.
If the Numbers Don’t Work, Walk Away
When you find a house you just have to have, you might be willing to try anything to make it work. It may seem like a great deal until you start doing the math, and you may be tempted to change the numbers a little bit because you think you can swing the deal. This is a huge mistake. If the numbers don’t work, provided that you’re doing the right calculations, you should walk away. You’ll save yourself a lot of headache down the road.
Don’t DIY Unless You’re Sure You Can Handle It
It’s tempting to try to knock out some of the rehab work yourself, but unless you’re a professional, it’s usually not a good idea. Make sure you have the right contractors in place for plumbing, electrical, roofing and other big fixes or you could end up paying even more for repairs.