Are you new to the fix and flip game? Before starting your investment project, make sure you don’t make these 4 common mistakes!
1. Not Setting Aside Enough Money
Real estate investments, like fix and flips, can get expensive. The first expense you encounter is the purchase price of the property you want to flip. Renovation costs come next. Projects like installing new cabinets, replacing tile in the bathroom, or updating lighting fixtures need to be factored into your cost. Don’t forget to account for any emergencies or unforeseeable mishaps!
2. Not Having Enough Time
Completing a fix and flip project is can be time consuming. It could take months just to find and buy the right property for your project. Then, you need to invest the time to rehab the property. If doing fix and flips is a side hustle to your full-time job, it can take even more time to complete since you’re limited on when you can actually renovate the property. Don’t forget to account for the time it takes to get the home inspected, and to be on the safe side, account for some time to have to make possible adjustments. Most importantly, be prepared for how long the selling process may take! No matter how hot the market is, you can never 100% predict how long it could take to sell. Just be realistic when creating your projected timeline!
3. Not Enough Knowledge
Navigating a real estate investment can be tricky without the right knowledge. To be successful, you need to know how to pick a good property, the right location, renovate it correctly (or hire experienced help), and know the ins and outs of taxes, laws, and zoning codes. If you’re local and looking for more helpful information on the legal side of things, check out our Facebook page for our monthly meetups in Pittsburgh!
4. Not Enough Patience
Take your time! Don’t rush into any part of the process. Don’t just buy the first property you come across or hire the first contractor you find. Good things take time, and your project is definitely one of them! We know that real estate investing can be exciting, but trust us, patience is key!