What is a “flipping” a house? A flip is a residential investment when a house is purchased in bad condition, intending to renovate and/or remodel. This is also the process called Fix and Flip Loans and is then listed for sale for a profit.
So what can be some of the challenges when purchasing a home to flip? These types of investments have many moving parts, so savvy investors will know how to look at the deal from different angles. The purchase price can be as important as the renovation budget or the contractor you pick. The typical variables such as location come into play, along with making renovations that are comparable to what is popular in its proximity. Following are some pointers to follow when venturing into flipper territory.