Criteria for a good flip

[Kenneth Huddleston]

Hey, i was just hoping you guys could share with me the criteria for when a property is worth your time to flip and when it isn't. I know the basic 70% rule of ARV minus repairs, but what else do i need to know when looking at properties.

[CK Hwang]

For myself, in addition to how much it costs to repair and how much profits, I'm also looking at

1. location. Good and easy to move or bad neighborhood and sitting for awhile?

2. Neighborhood reputation for quality of land or construction. Where i am, some neighborhoods have reputation for landslides, so I tend to stay away from them. Some neighborhoods around me have a reputation for slab leaks because of shortcuts the builders took in the 80s, so I know I need to budget for repiping and slab repair.

3. Title. Is it clean and easy to transfer.

4. Delivered empty or tenanted?

5. Architecture. Some homes are just really really ugly, not in the fixer upper sense, but just some awful 1970s design that would cost a fortune to rectify. Homes like these will sell, but they will tend to sit longer. Also, weird architectural features, like the house being extremely skinny or too few bathrooms, etc.