Tuesday 15 March 2011

Thinking of House Flipping and Mortgage Refinance? 3 Tips

By Judy Slamerson


Learning about the real estate business means understanding all there is to understand about mortgage refinancing and house flipping. There are some recommendations that will be useful to you if your plan is to find a way to make the real estate business work.

1. Select the Home Locations

One trade secret of all successful house flippers is the location where they purchase homes for selling. The reasons why a home is low priced in such a good location are many and varied, and you need to figure these out yourself. The best way to start earning big is assessing the value of the home you plan to buy, based on the current trends and the city where the home is located. A locality that has the potential to improve, taking with it the real estate situation in the area, is a good choice.

Your plans for mortgage refinancing in the future may depend highly on the current rate of your investment. Go for communities with decent weather so that you can attract more buyers. Extreme weather means more expenses flowing out because of future renovations and upkeep. Suburbs in cities with moderate weather will always have great living conditions, and so many homeowners want to own homes in such places.

2. Make a Budget for Your Renovation Expenses

Make allowances for big renovation projects like roofing, plumbing and wiring. Expect the lower priced houses to have poor ventilation, less than optimum flooring and leaking roof. You can negotiate a lower price if you notice these things. You must have good budgeting skills to make sure you cover renovation costs. Find the construction firms that charge the lowest. It makes no sense to plan an expensive renovation when you plan on reselling the home and not live in it.

Take the renovation price into account when you plan for mortgage refinancing. Always remember that your goal is to increase the value of the house. How much money you earn depends on your budget for expenses.

3. Shop for a Good Mortgage Refinancing Option

With mortgage refinancing, we mean paying for an existing mortgage using borrowed money. This is a common thing among home flippers who are having trouble finding suitable buyers. This is for you to avoid spending your own money to refinance. You may need to increase the price you are asking for to cover the further expense.




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