5 mistakes that house flippers make

Flipping houses can be tougher than you think, and harder than it looks. One of the reasons people fail is NOT ENOUGH MONEY. Whether you're paying cash or financing, you still have to look at utilities, renovation cost, and capital gains taxes. You can very easily lose track of spending and take a major hit in your profit. The second reason is NOT ENOUGH TIME. Renovation is very time consuming. First you have to find the right house, then getting permits, inspections, and not to mention, your time spent on renovating. Ask yourself is it worth you making 15% profit or should you keep your day job. The third mistake is NOT ENOUGH SKILLS. Most of your profit comes from the sweat equity that you put into your investment. Having the skills to hang drywall, lay carpet, or installing kitchen sinks comes in handy. If paying someone is your idea of flipping houses, then chances are, this isn't for you. The fourth reason is NOT ENOUGH KNOWLEDGE. DO NOT let you project become a money pit. Study the area before purchasing your project. If you buy a home for $75,000 and comps are averaging $110,000, spending over $25,000 on reno is probably not a good idea. You should keep upgrades cheap, and only upgrade what makes since. Remember, YOU WILL NOT be living in this house. The fifth mistake is NOT ENOUGH PATIENCE. Take you time when searching for the right project. DO NOT jump at the first offer because it sounds good, or you're ready to sell. This takes time, don't sell yourself short, Selling a house takes time.