Home buyers want it all… A nice home on a quite street, with private yard, good schools nearby, and of course all the cliche things too such as stainless steel appliances and granite countertops. Therefore, as a flipper – I aim to give home buyers what they want and when I’m looking for properties, I try to find homes that have the potential to have it all.
However, occasionally there are houses that are not ideal for one reason or another (busy street, only one bathroom, ugly neighboring homes, etc.) but one must consider what the home has to offer that still might make it a good deal. In a perfect world, I would have super hero powers and just pick up the house and move it a block over to a quite street. But in reality, I need to consider if the house has something that will make the future home buyer “justify” the things that as a flipper, can’t be changed.
Yesterday I looked at a home very close to where I live in Central Phoenix (so obviously I like the neighborhood) but unforunitley it’s on a very busy street. I would personally really struggle with living on a busy street, but there are people out there that wouldn’t be phased by it. After viewing the home, I realized that the busy street didn’t make it ideal, but the home was still a deal because although the listing said it was a 3/2, it’s actually a 4/3… And almost 600 square feet larger then expected. At some point in the house’s history, the carport was converted to a mother-in-law suite with it’s own entrance… Which means that whoever buys this home, immediatley has an income property which can help support their mortgage. That’s a huge opportunity for so many first time home buyers that might be concerned about their monthly payments.
With the right changes to the property: updating the bathroom tile, replacing the bathroom vanities, new interior paint throughout, reconfiguring the kitchen, adding stone countertops, putting in stainless steel appliances, and providing the home with some much needed design and style… By the time it’s complete – It will be nicer then the comp houses that also sold on busy streets!
MY FLIP TIP – Ask yourself, would you live there? If the answer is no – Don’t buy it! Because other people will be saying the same thing. If the answer is that it’s not ideal, but still a deal – Go for it and make the home the best it can be!