House flipping is, essentially, buying a property with the intent to sell it for a profit. Sounds pretty simple, eh? There are a lot of decisions that go into purchasing a house to ‘flip.’ You will need to consider everything from, where you should buy, to who will do the renovations, and how long this process will take you.
If you purchase a house in an up-and-coming neighborhood, you’re banking on the neighborhood increasing in value. If you decide to buy in a new development, you’ll want to attract higher-end home buyers who want the luxury features and space offered in the suburbs. If all goes well, you could make a nice profit. But if something goes wrong — and in home renovations IT ALWAYS DOES — you could be stuck with a house that makes your hair stand on ends instead of earning a profit.