Single-family homes are the most common types of homes that hit the market, so if you want to make money selling real estate, this can be the best option for you. You can buy single-family homes and resell them for profit, but you need to shop wisely so you don't end up having most of your potential profits eaten up by taxes and repair costs.
Here are some things to consider when you buy single-family homes for resale. Choose a budget you're comfortable with and contact your real estate agent to help you get the properties you need to start working on making a profit in real estate.
Are you going to rent the properties first?
Any family homes you buy can potentially be used as rentals first, but you need to let your lender know if you plan on living in your home or renting it out for a while because your loan will be different based on these factors. If you want to rent out properties prior to selling them, then your lender fees might be more costly, so you might want to consider lowering your budget for family homes to help balance this out.
Are you going to buy fixer-upper homes?
Homes that need to be fixed up come on the market at lower prices than other move-in ready homes, but these cheaper prices don't always mean a bargain. Buying fixer-upper homes means not only paying for the repairs a home needs—which could be more than expected since not all red flags show up in an initial home inspection—but also paying a mortgage on your own until the home is ready to flip and be sold to a new buyer.
Can you afford both the repair costs and paying the mortgage of a home for several months? One thing you can do is live in the property while you are repairing it so you are paying only for your own single mortgage, then selling the property and using some of the potential profit to buy another property for yourself or invest in another flipper.
You can make some money on buying and reselling single-family homes, but you should take caution as you get into this endeavor as it can be initially costly and there are things to learn. Your best option is to buy a house based on what you can afford and start your reselling adventure small with the help of an experienced real estate agent.Share