Identifying a Flip (what to look for)

[Alexander Budka]

Hey All,

Im looking to flip my first property in what I see as a niche market. My first question is: how do you know what holds value? Secondly, how do you estimate repairs precisely?

Alex

[Brian Burke]

This might sound totally ridiculous, but take your best estimate after doing your research, and double it. If you get a contractors estimate, multiply it by 1.5. Until you have done a few of these you will grossly underestimate the costs. After the final tally, you'll ask yourself, "where did all of that money go?" One of the most common reasons that most people never do a second flip is that they totally underestimated the costs on the first one.