To be a successful fix and flip investor, you need to have a strong eye for the right type of property.
Make no mistake, there is no dearth of fixer uppers out there; every block in every neighborhood has one.
However, you need to find a fixer upper that gives you the best chance to maximize your returns.
How to know if the fixer upper you’re interested in fulfills this criterion?
Ask yourself these three important questions.
What Does The Fixer Upper Have To Offer In Terms Of Location?
Location is the most important aspect of any residential property and fixer uppers are no different.
A fixer upper located in a safe, clean and convenient neighborhood is likely to be more appealing to potential homebuyers than a fixer upper located in an unsafe, dirty and remote neighborhood.
Make sure that the fixer upper you’re eying is located close to community amenities and in a neighborhood where crime rates are low.
How Much Will It Cost To Restore The Fixer Upper?
A fixer upper requiring significant restoration should be avoided, even if it’s located in an ideal neighborhood. Such types of properties carry big investment risks and often fail to provide adequate returns on investment.
Survey the property you’re interested in with your contractor to determine its true cost of restoration. Research what needs to be done to bring it on par with other in-demand residential properties in the area. Check whether the investment fits your budget. Ensure it does not involve expensive repairs and remodel.
Will I Be Able To Sell The Property Quickly?
This is another important question to ask yourself.
Fix and flip investment strategy is all about making quick moves in the market. You don’t want to miss out on the next BIG opportunity, while waiting for funds to come from the sale of a previous restored property.
Therefore, it’s important to ensure that the property you’re interested in has the potential to generate a quicker sale.
Research other properties in the area to establish local vacancy rates. Make your investment depending on your findings.
Are you interested in a fix and flip property in Massachusetts but don’t have the funds to finance its purchase and restoration?
Harper Financial can help you!
We’re one of the leading real estate financing firms in Massachusetts, providing real estate investors with quick and easy to access commercial loans. Our loan terms are designed to provide clients with a convenient and affordable solution to their investment needs.
Get in touch with us today for a free consultation!