House Flipping

What not to Buy

I recently wholesaled a house from a would-be investor who bought wrong. He wasn’t local and did not learn about the neighborhood. The house was on a block that was about 50 percent vacant and surrounded by really ugly houses. The ARV was only $25,000 and it needed $15,000 in repair. He paid $17000 and ended up selling it to me for $5000. My buyer got a good deal and since he was fixing it himself he stands to actually make a profit.

Lesson to learn the easy way: If you buy remote, take the time to really understand the area and the resell potential. Get a local person to help you.