Detroit Real Estate

The key to flipping homes of course is to make a profit.  So many times I see first time home investors jumping in with both feet buying properties that may not make a profit.  I have seen some first time investor fail miserably.

Making a profit is not so easy.  The two biggest mistakes I usually see is: 

1.) The inability to estimate the cost of repairs correctly

2.) The over estimating of what the property will sell for.  This is important because if you are $5000 or $10,000 off that eats directly into your profit.  So when you look for investment properties be sure to know what the property should sell for after it is fixed up.

Have your real estate agent pull comps of the recently sold homes.  Don't be overly optimistic of what the house is worth.  Don't plan on selling the house for what the most expensive house has sold for.  That is what gets some first time investors in trouble.

So if you are a first time home investor estimate and re-estimate.  Have somebody experienced go with you.  Then don't plan on getting more than what recent homes have sold for.  Plan on a mid-range sales price and that will help you decide whether to buy the property or not.

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