Flipping 2 Bedroom 1 Bath homes?

[Daniel Elbe]

I'm a newbie in real estate investment.  I have two rental properties, but am looking to fix and flip my first home this year.  I'm out in the Colorado Springs area, and have noticed good numbers on smaller, 2 bed 1 bath homes in the downtown area.  I've always been more attracted to 3 bed 1-2 bath homes, but have not seen many with a great numbers.  I'm wondering if people have had success flipping smaller 2 bedroom homes (under 1000 sq ft.).  The numbers may be promising, but if I can't move the house not much point.  Is it worth looking into?

[Randy Rought]

I would recommend flipping a smaller place like a 2 bed/1 bath as a starting investment - a training property.  You can learn so much, and the cost isn't as high as a larger property. Learn to wade before you learn to swim.

This summer I picked up my first investment property - a foreclosure condo (2 bed/1 bath).  It was in good shape structurally, but very VERY dirty (smoker) and in need of some basic upgrades. I renovated the bathroom, flooring, countertops, minor electrical work, some minor plumbing, swap out of the kitchen appliances, inspection of the furnace and fireplace, and basically clean it up before being painted.  I think that a smaller place was a perfect learning property. I learned just how easy it was to underestimated renovation costs and time (even though I did the majority of the work myself). I learned about keeping track of my budgeting, expenses, man hours, and travel. I learned that some things need to be ordered before you are ready for them. One major item which has resulted in a long delay is getting countertops. I am ready for them now (thinking I could have them installed in a week), and  it will be a 3-4 weeks minimum wait. At least 2 weeks just to get them measured and a couple of weeks to get made. I wanted to put in hardwood flooring, but I learned that there were some high spots (ridges) that would not allow me to install wood flooring, so I had to change midcourse and put in carpeting. I will be waiting on carpeting for at least a week or so. If I would have had the place measured earlier in the renovation, I would have it on the market this week. 

I like the concept of starting small and working your way up to the larger deals.