Flipping is the art of buying wholesale properties, fixing them up (rehabbing), and selling them for a profit.
When you flip you want to find the worst property in the best neighborhood. That way when you bring it up to the neighborhoods quality standards the property will most likely sell quickly.
You want to fix and sell as fast as you can to avoid having to pay the mortgage and property upkeep. In a sellers market this should be rather easy. Likewise, if you were to buy a run down property in a bad neighborhood you will have to resort to drastic measures to get rid of it. You may also end up holding it for a long time. Even if it is fixed up to be a palace it is still in a bad neighborhood and you will not be able to change alot for the property. You can easily end up losing money on this type of deal.
When flipping you want to make sure your tastes do not interfere with the property rehab. for example, high end houses like high end appliances and floors. Putting cheap hardware in a high end property is a horrible mistake to make. You can easily make or lose thousands depending on the material used in a property.More Articles