by Isabelle Esteves

Created on: April 09, 2009

Flipping a house has gained a great deal of popularity due to all the TV shows that make it seem like an easy way to make a lot of money. What they don't show and don't always tell is that many more flippers lose money than make money.

Making money on flipping a house is a little bit like going to the casino and betting on the roulette wheel, red or black. In order to give yourself the best chance of success at your bet you have to know what you are getting into.

In order to have the odds be in your favor you need to be very careful when you chose your house. You need to have a home inspection before your purchase any house. Not just a casual one either, you will want to pay to have an intensive, extensive inspection. If there is one thing that will undermine your potential for profit on it your flip it is finding out that you have major structural or foundation damage. You need to know the condition of the electrical , plumbing and roof. Major unexpected expenses can mean the difference between making a profit and losing money on your flip.

You don't want to have the best house in a bad neighborhood, you are much better off buying the worst house in a good neighborhood. One thing to keep in mind when looking for your home is that you can change the home but you can't change the neighborhood. Also if it is a family neighborhood you need to have at least three bedrooms.

You should be pre-approved for a mortgage so that when you have found your house, determined the price that is fair and had your inspection you are ready to make the jump into flipping. If you watch the flipping shows you know that being realistic appears to be a major issue.

You have to determine what you are able to do yourself, what you need to contract out and most importantly how long it is going to take. Unless you have no other job, which I want to point out may make getting a mortgage pretty tough, you should hire a general contractor.

A general contractor can coordinate all the other contractors you will need. They should also be knowledgeable about local codes and permits that will be necessary. Another important thing to remember is that this is not going to be your home. Good taste is important but not your taste, be more generic. Everything should be neutral in color, not boring but something that appeals to most people.

Setting a budget and sticking to it is vital to your success. There are many things that can happen to sabotage your project but with a plan you will always have your goal in sight. Never just go shopping without your budget and plan in mind. If lighting isn't going in until week seven you don't need to have it hanging around in week one. If it needs to be ordered then by all means make sure it is available when you are ready for it.

There is money to be made in flipping houses even in the present weak housing market but you need to do your research and do everything possible to minimize the possibility of any unexpected and not budgeted for expenses. Set realistic goals and hire a general contractor who you know and trust.

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