When investing in a house, it is important to use the 70% rule. When your realtor finds you a good deal, keep in mind that they may or may not have a good estimation of the expenses required to bring this house up to sale condition. It’s important to bring in your GC (General Contractor) and let them help you determine a realistic dollar figure after they make a full inspection of the prospective property.
Obviously, there is always the possibility of an unforeseen problems once you tear into the project, but you can drastically reduce your risk by bringing in a GC before you commit to the purchase.
Missing a major flaw in the property because you didn’t do your due diligence could be a costly mistake and can consume all the profit you thought you were going to make on the “Flip”….. and even more.
Ready for your next Fix-N-Flip?
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