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With the economy bordering on a recession, many people are seeking alternative ways to make money. Competition is high and with shows like "Flip That House" on television, the idea is catching on. Here are a few tips for earning the most profit and deciding if this business venture is right for you.

1. Do it yourself. Let's face it; if you are not a handy person capable of completing most home repairs by yourself, you may be in the wrong business. At least a moderate knowledge of building codes, electricity, plumbing, dry walling, flooring and kitchen and bathroom renovations is required. If you have to contract out most of your work, your profit likely won't be worth the time and energy required to complete it.

2. Research the best way to finance your project house. Putting a mortgage on your house isn't always the most profitable decision. If you have the equity to buy your house with a credit line, it may be cheaper. Consider the mortgage rate against the interest rate of your loan and factor in any penalties you will need to pay for breaking it. To get the best mortgage rate you will usually need to lock it in for five years or more but will be penalized greatly when you sell your house after only a couple of months. Do your accounting.

3. How much time do you have to dedicate to this business? Are you working full-time at another day job? Do you have small children or other family responsibilities that consume a lot of your time after work? The best way to make money flipping a house is to turn it over quickly. You don't want to be paying interest, bills, taxes and insurance on your place for more that a couple of months. Firstly, you need the money to pay for these expenses up front and secondly, it just eats up your profit.

4. Invest in a pick-up truck or large van. When you are bargain hunting for building supplies you need to be able to transport them around at will. The last thing you want to do is pay money for delivery or have no immediate way of purchasing it. Although a couple of the larger tool stores offer free delivery, it is usually only after you spend a considerable amount of money at their store and you will lose out on getting the best deals. If you buy a truck and make it your every day vehicle, you can stop off at stores or your project house after work if you need to.

5. Research the tax rules in your area. You may be able to write off the purchase of your truck and some of the gas you use. Know what you can and can't write off and keep

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