We asked Tony Sicilian to give us a quick checklist for good flipping ideas. These are his recommendations.
Timing. “The hottest time to list a house is coming out of the winter — that’s when everyone is thinking of moving. It starts to slow down August through January. The perfect time to list is February.”
Comps. “Keep an eye when you look for your comparable sales your actual look at comparable houses — identical square footage, yes, but also design and layout. The same size isn’t the only thing to consider.”
Don’t repair a house as the person who’s living in it — repair it as the investor. “Your profits are in the broader public, not the narrow custom build-out.”
Repairs should add value. “Are you really making money using real hardwood flooring as opposed to manufactured? Your profit is already built into the buying number, so don’t overdo it. Granite countertops don’t necessarily increase the value.”
Make sure the market you’re targeting has actual buyers! “The market range of $100- to $285,000 is where people can qualify for loans these days. Under $100k doesn’t exist — the subprime market is gone.”
This article appeared in the Defining Homes Magazine, October 4, 2013.
