If you want to try and get into real estate, there is no better way than to flip. Flipping is when you buy a run-down property, renovate it, and resell it for profit. However, flipping also comes with many challenges. Repair costs, unforeseen expenses, not selling at the right time, or not finding the right property to name a few.
You also need funds for flipping, and this is where you can count on RCN Capital, the leading nationwide lender for real estate investors. Our experts will help you with short-term fix & flip and long-term rental loans. Today, we talk about how to find houses to flip in 2024.
Ways to Find Houses to Flip
There are many ways to find the best houses for flipping and reselling. Let’s see which ones work best.
There is nothing you can't find on the internet, but can you trust all your sources? Here are some online sources you can trust to find your next property to flip.
- Zillow: One of the biggest online hubs to find the best properties is Zillow. You can search for the perfect property using the website's many filters.
- com: With millions of monthly users, Realtor.com is your best bet to find the house you are looking for.
- Trulia: Trulia is not only great for older investors but also for the next generation of investors, as it has a user-friendly app that anyone can use.
Apart from these, there are many more trusted websites you can check out on your own but be sure to research the credibility of each source.
Auctions and Foreclosures
Another easy way to find distressed properties and buy them for less than their market value is by attending house auctions. However, you will need cash to bid and lock the property in at such auctions. These auctions are also high-risk gambles because not all allow inspection and looking around the property before purchase. But the upside is that you will get the property at a lower price, and the process will be faster than usual.
Real estate Networking
Joining real estate investment groups is yet another way to know if a distressed property is on the market. Networking is a winner when you are in the real estate game. Such groups come in handy if you are looking for tips, sharing and learning news, and can also lead to finding an excellent property to flip.
Through networking, you can get in contact with sellers who may be selling their homes in a hurry. An ugly divorce, inheritance, and relocation are just a few reasons people may need to sell homes quickly, and at a lower price than market value.
Keeping a vigilant eye on REO listings also helps. Investors looking for distressed properties should watch for bank-owned properties that are repossessed after foreclosure. Such properties are often sold well below market value.
Once you know where to look, here are some tips to get your hands on the best property to flip:
Tips for Successfully Flipping Properties
Analyzing the Market
If you have found a house to flip, your next move is to understand its potential before purchasing it. You can easily do that by analyzing the surrounding market. This may include buying preference, rent rates, and the demand in the area you are considering investing in.
Calculating the ROI
To understand the property’s potential, you should also calculate the ROI, i.e., all estimated costs and the potential profit you may earn from it.
Now, this is one of the most important steps of all. You will need to get the property inspected by a professional to assess the repairs and other associated costs. Keep an eye out for structural damage, as this issue can be very costly to fix.
The right location always pays off; look for neighborhoods with low crime rates, easily accessible transport, and other amenities that may add to the value of the location.
Flipping houses is not for the faint-hearted. You must invest time, effort, and funds to flip a distressed property. Regarding the funds, the experts at RCN Capital will devise the best strategy for you. Just give us a call and get a free quote and consultation for all your investment loan options.
The easiest way to save on your next investment is to obtain financing from a real estate lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are looking to finance a home flip, RCN Capital has competitive loan options available.