House Flipping Tip # 5

“Flipping” a house typically means buying, rehabbing and selling for a profit. Here are is one of seven tips to help you get started: Don’t invest more than 70% of after repair value (ARV) in the purchase price and rehab costs of a home you plan to flip. Why? Because you’ll still have other costs to consider. You’ll have to pay for utilities, property taxes, homeowners and liability insurance while you’re rehabbing the home. When you sell, you’ll need to pay Realtor’s commission and closing. Keeping your investment at 70% ARV is the traditional formula for covering your costs and making a profit.