With the number of bank owned properties on the rise, why not buy a foreclosure and remodel it for profit? Sounds easy, right? Not necessarily. There are many pros and cons to flipping houses. First and foremost, make sure you use a Realtor who understand your goals and has experience with foreclosed homes. He/she will be able to help you find a home in the best location with the biggest amount of profit. They should understand how you will pay for or finance the home. If you cannot pay cash for a foreclosure and it’s in bad condition many lenders will not approve loans on homes that are non-habitable. Therefore you will be forced to do a 203K loan or portfolio loan, which have higher interest rates. Make sure you are knowledgeable about the cost of the repairs and do all your homework. If you cannot estimate on your own, take a contractor or handyman through the property with you. And ALWAYS err on the high side, assuming things will come up during the remodel you have not factored into your budget. Don’t forget to include holding costs for your mortgage (if any) and utilities paid while you are trying to sell the home, plus any Realtor fees when you list it on the market, as this will all eat into your bottom line.
In Westerville, Plain Local (New Albany), and Gahanna Jefferson school districts, all on the north/northeast side of Columbus, there are over 50 bank owned or HUD homes currently on the market for under $150,000. Call me today for a complete list of foreclosures or if you have any questions about trying your first flip. As with any investment there are risks involved, but as long as you do your homework and preliminary research you should be profitable. Good luck and happy flipping!