Table of Contents
Top Ten Advantages of House Flipping 10
Introduction 11
01 What Is House Flipping? 13
The Basic Essentials You Need to Know 14
Identifying the Current Housing Market 16
Short- and Long-Term Benefits 19
Common Risks You Must Consider 21
Four Most Common Mistakes People Make 23
Recognizing Your Potential in Flipping 24
02 Getting Started 27
Understanding the Flipping Process 28
Establishing Realistic Expectations 30
Crafting Achievable Goals 32
Making a Business Plan 34
Setting Project Parameters 37
Creating a Timeline 38
03 Securing Project Funding 41
Estimating Costs 42
Creating a Budget 43
Bank Financing 45
Working with an Investor 46
Funding the Flip Without an Investor 49
Calculating Potential Profit 50
Assessing Financial Risks 50
04 Developing Relationships in the Business 53
Doing Your Research 54
How to Choose People to Work With 55
Making Connections for Long-Term Benefits 57
Real Estate Agents 58
Banks and Investors 59
Contractors 61
Supply Companies 62
Inspectors and Appraisers 63
City Officials 65
05 Finding a Property 67
Choosing the Best Market for You 68
What to Look for in Your Search 70
Assessing a Property 72
Home Inspections 74
Working with an Agent 75
Buying "As-Is" 77
06 Conducting an Exterior Inspection 79
Preparing for an Exterior Inspection 80
Roof 82
Garage 87
Exterior Paved Areas 89
Outdoor Structures 90
Landscape 93
Exterior Doors and Windows 94
Walls 95
Energy Considerations 97
07 Conducting an Interior Inspection 99
Preparing for an Interior Inspection 100
Windows and Doors 101
Walls, Ceilings, and Floors 103
Specific Rooms Throughout the House 105
House Utilities 109
Environmental Concerns 113
Energy Considerations 115
Insects and Rot 116
08 Buying a Property 119
Negotiating a Price 120
Common Negotiating Mistakes 123
Discussing Terms 124
Types of Sales 125
09 Types of Renovations to Consider 129
Deciding What Needs to Be Renovated 130
Utilities 132
Cosmetic Repairs 134
Landscaping 135
Outbuildings 136
Appliances 137
10 The Renovation Process 139
Major Renovations versus Cosmetic Renovations 140
Renovating with a Buyer in Mind 141
Where to Start 142
Working with Contractors 143
What to Do Yourself 145
The Importance of Documentation 146
Ways to Save Money Without Cutting Corners 148
11 Green Options in Renovations 153
What Does It Mean to Be Green? 154
Recycling and Repurposing 155
Eco-Friendly Exteriors 157
Roofing and Solar Panels 158
HVAC 159
Water Heating Systems 162
Green Flooring Options 163
Other Green Renovation Options 165
Sorting Through Your Options 166
12 Working with a Realtor 169
Understanding the Selling Process 170
Targeting Your Market 172
The Cost of a Realtor 173
Closing Costs to Consider 174
Evaluating Offers 176
Having a Plan B 178
13 Selling Without a Realtor 181
Know the Risks Before You Sell 182
Learning How to Set a Price 183
The Importance of Marketing 184
Working with Landlords and Other Property Investors 185
How to Sell a House Step-by-Step 187
FSBO Services 189
14 Preparing to Stage the House 191
What Is Staging? 192
Doing Your Research 194
Know What Home Buyers Really Look For 195
Preparing to Stage a Home 196
Decorating the House 198
Curb Appeal? 199
What Not to Do When Staging 200
15 Staging Room by Room 203
Exterior 204
Entryway 205
Public Spaces 206
Private Spaces 209
Utility Spaces 212
Unfinished Spaces 213
Outdoor Entertainment Spaces 214
16 Marketing Your House to Sell 217
Strategies That Work 218
Strategies to Avoid 219
Creating Your Own Website 220
Internet Marketing 222
Creating Marketing Material 224
Open Houses and Showings 226
Developing a Practical Strategy 227
17 Managing Multiple Flips 229
Considering Locations 230
Negotiating Several Contracts 231
Organizing Multiple Timelines 232
Supervising Multiple Budgets 233
Recording and Paying Taxes 234
Knowing When You Need Extra Help 235
Creating a Brand 237
Managing an Office 238
18 Mouse Flipping Tax Requirements 241
Paying Property Taxes on Flipped Real Estate 242
Working with an Accountant 242
How House Flipping Affects Income Taxes 244
The Real Costs of Doing Business 246
19 Legal Regulations 249
Legalities of Buying and Selling 250
FHA Anti-Flipping Regulations 251
Local Regulations to Consider 254
Building Permits 255
Partnership and Investor Contracts 256
Disclosure Statements 258
Beware of Housing Scams and Mortgage Fraud 261
20 Facing Risks Head-On 263
Planning for Major Expenses or Renovations 264
Unexpected Repairs 265
Unforeseen Expenses 266
Contractor Fails and Mistakes 267
Vandalism and Theft 269
Other Potential Risks 270
When Your House Does Not Sell Quickly 273
Appendix A Staging Checklist 275
Appendix B Inspection Checklist 279
Index 291
