Having the courage to buy a fixer-upper on the cheap with the confidence that you can make the repairs and remodeling – and then resell for a profit – is a brave face.  If you decide to take on buying a house to flip, do so with your eyes wide open.  You must do a market analysis first and then get a solid estimate on what the repairs will cost (including the time investment).

American Health Advisors offers a reality check on what it’s really like to flip a house,

… you need to set aside at least twice as much money (preferably three times as much) as you think you will need for the work on the property in order to cover the actual costs that will be needed. There are inevitably tools, permits, supplies, and labor that wasn’t counted on in the initial budget figures as well as the tendency to seriously underestimate the cost of the materials that will be needed in order to get the job done. If you don’t have that much or can’t spend that much and walk away without a loss then the property you are considering might not be the best property for your first flip.

Excellent advice. Read the whole article and give it serious consideration before jumping in.

Photo by nolaclutterbusters via flickr creative commons.