My fiancé and I started looking at homes to buy and own in February. After viewing about 20-25 homes we decided that our champagne taste on a beer budget wasn't going to yield us the house of our dreams, or at least one with all of the amenities we desired. With that said and the many real estate shows we've watched, we've decided to take our money and invest it into the house flipping business. Now, you're probably wondering about our situation and how we're able to do this. Currently we live in a house owned by my father so we only pay utilities, no rent. This reduction in living cost has allowed us to save money and use what would have been "our" house payment on a house that will hopefully make us some money.
Back on track. We are both novices when it comes to flipping real estate but my good credit and our sensibility with money has allowed us to qualify for a mortgage that will cover the entire cost of a home, to include the 20% down payment.
Once we got into the mindset of looking at homes from an investment standpoint, our house shopping became much more difficult. It appears that it is very difficult to find a home with only cosmetic problems. As a general rule, a cosmetic house is a great flip for first timers. That we are! So, after looking at foreclosures that are still priced at market value and homes with trees that have fallen through the roof, we finally found our flipper. It's a beautiful home actually but has been vacant for nearly a year.
The house is 4 bedrooms, 3 1/2 baths. The outside is siding and the home has 2 levels and a basement. The basement is nearly completely finished. The laundry room has a small section that isn't finished but we look forward to our first drywalling session.
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