Experienced fix-and-flip professionals know that analyzing a few simple best practices can help to quickly identify (or eliminate) an investment candidate. Below are four of the most common ones to apply when analyzing your next property.
First, “pull the comps” from MLS.com for recently sold houses in your target neighborhood that possessed a similar size, layout and age. Pay particular attention to the price they sold for and how long they were on the market. See if those sale prices and holding periods fit your particular profit model and goals.
Next, visually inspect exterior factors such as:
* Condition of the roof, garage, doors and windows.
* Curb appeal of the architecture, trees, and landscape.
* View appeal factors that include line-of-sight to water, city skyline, or mountains.
* Street location (a cul-de-sac versus a major street / intersection)
* Proximity to potential eyesore factors like factories, power lines, rail lines, and more.
In addition, analyzing market timing factors like current mortgage rate trends and seasonal buying cycles will offer additional insights.
Finally, check with experts and friends on your fix-and-flip team including neighborhood real-estate agents, appraisers, inspectors, and neighborhood residents to name a few.
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