4 Tips to Help You Turn a Profit Flipping Property in IN

If you are like me, you love real estate.  Are you wanting to learn about how to turn a profit flipping property in IN?  We have assembled some great adive to help you on your way to making huge profits by buying and selling homes in IN. 

Fixing up and flipping homes has grown year after year in the Indiana and surrounding states.  Our markets are great areas with stable job markets.  Part of the growth has come from late night gurus selling programs and some has come from reality TV shows and still more are from average people falling in love with the idea of making big profits in real estate.  .

Before diving into the deep end you will need to make sure you understand what your getting yourself into.  Before you dive in head first, you should make sure you understand exactly what you are getting into.  It isn’t easy learning how to turn a profit flipping property in IN.

Know Your Market

Real Estate Markets vary throughout the US. What is happening in your local market, might be different than what’s going on in the country as a whole.

If you want to know how to turn a profit flipping property in IN then you will want to pay attention and research your market by learning:

  • Are prices rising or falling?
  • What are new facilities and infrastructure is in the works?
  • What about the area will attract buyers?
  • Are employers hiring?
  • Are new employers coming into your market?  Are they moving out of your market?
  • What does the census say about the population?  What is the trends over the last 3, 5, 7, 10 years?  Are people moving out of your area or to it?
  • Are the areas you are looking at safe to live in?  What is crime like there?

Determining these things will help you decide if it is a good idea to flip property in IN.

Know Your Numbers

Next, paying attention to your numbers will be a top priority.  Do you know what ARV is?  It stands for after repair value.  When buying a flip you will make money based upon the difference between what the ARV is minus repairs, minus what you buy the home for, minus carrying costs, and finally minus sales costs.  To figure out what the ARV is you have to know your market and what the homes are selling for surrounding your home.  Value is determined by comparing your home with other like homes in your local market.  Like homes are ones that are similar to your house, sold in the last 12 months, and within a mile of your home.  The closer and most recent will be the best indicators of value.  Working with an experienced Realtor will really help in this area. They can help you determine what repairs will bring the most dollars to your pocket.  Paying attention to this is how to turn a profit flipping property in IN and is paramount.

Determining construction costs is the next number you need to consider.  Working with an experienced contractor is also someone you need on your team.  It seems that every project I am involved in is more expensive then I originally thought it was.  But, having an experienced contractor can help you get closer then just winging it.

You will also need to factor in the time it will take to complete the work and sell the house. Carrying costs can really eat into your profit when you want to turn a profit flipping property in IN.  While you are the owner, you will be the one responsible for the taxes, utilities, the mortgage (if you have one) in addition to the costs of materials, labor and so on.

Know Who Your Buyers Are

Before I even purchase a home I know who my buyer is.  This is normally determined by the area of town I am buying in.  Demographics in a neighborhood help you determine who you will be selling the home to.  Knowing if the area is primarily families, or retirees, or outdoor lovers, or renters, or investors, or students will be a big help in deciding how to remodel the home.

Buying a home that has the features your leading demographic is looking for is key. If you have young families buying in the area, focus on creating an open family room or finish the basement. If you have retirees, make the house easily accessible and the yard low-maintenance.  Knowing your exit strategy and having more then one is one way to increase your odds of turning a profit flipping property in IN.

Price To Sell

Another key number is price you will sell your home for after it has been remodeled.  Be realistic about what you can sell the home for.  When you and your Realtor are calculating your ARV, don’t inflate the price to what you hope to get. When flipping a home, you want to sell it QUICKLY!  That is one reason that ARV is so important.  One thing I have learned over and over is that you make money when you buy the home, not when you sell it.  If you know what your ARV is, what your carrying costs are, sales costs, and rehab costs then you know what the max you can buy the home for and still turn a profit flipping property in IN.

Are you ready to turn a profit flipping property in IN?

If so, it is important to spend time thoroughly educating yourself and making sure you are aware of all market factors that will be involved.

If you are new to flipping and real estate investing make sure you work with a professional who can guide you through the process so you don’t end up losing a lot of money!

Sky Line Properties LLC can help you with your investment needs! Give us a call (260) 220-8715 or use this form to contact us today!

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