Fix and flip a foreclosure home

[Rafael Rascon]

There is a property in my hometown that is a foreclosure for only $13,000. I'm very interested in buying it for a fix and flip. Today my father and i went to go look at it and It does need a lot of work, the agent said that they told her that it can be fixed with the right paper forms and my question was what what would be the next step to take? The houses around that neighborhood are surely priced anywhere from $60,000 and up! Please help me out on this! Thank you!

[Dean I.]

There are a lot of things you need to know.

1. Is that even a good area to flip a house?

2. How long does it take to sell a house there, once on the market? You real estate agent should be able to answer this.

3. What does the house comp out for. Your real estate agent should be able to help you with this.

4. How much are the renovations going to cost to include the necessary permits. You need to have a few contractors go out there to give you an estimate and then add a little on top of that to cover your butt.

5. How long will renovations take?

6. After renovations, financing fees, closing costs, commission and holding costs what is your profit, if any.

7. With all things considered (profit, time and personal/business needs) how much do you want to make on this house? Make sure whatever it is, it leaves you with enough room for screw ups and unexpected expenses.