My Guide to Flippin Houses
Y'all, Flipping Houses in Austin is a Blast, But Watch Out for These 5 Mistakes! Discover how to sidestep the pitfalls many new flippers face in the heart of Texas
By JAMES MCWHINNEY, Updated December 20, 2021 Reviewed by CHIP STAPLETON Fact-checked by VIKKI VELASQUEZ
Howdy, partner! You've seen those TV shows, right? Buy a house, slap on some fresh paint, sell it, and make a fortune. And guess what? Austin, Texas, is the perfect place to do it! Our booming market means there are plenty of opportunities for those looking to flip a house and rake in the dough.
Flipped homes made up 10% of all home sales in the US in the first quarter of 2022, the highest percentage since 2000! But before you go all cowboy and jump headfirst into the world of house flipping, let's talk about the five biggest mistakes newbies make, and how you can avoid them like a tumbleweed in the wind.
Now, remember, flipping houses is a business, and just like your favorite Texas BBQ joint, it requires knowledge, planning, and a whole lotta savvy to be successful. So, listen up and learn from these five mistakes to avoid:
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Not Enough Money Flipping houses in Austin ain't cheap, y'all. You've got the property acquisition cost, interest on borrowed money, and those pesky property holding costs. Research your financing options and make sure you know your budget inside out. To keep your risks low and your returns high, use the 70% rule when considering the purchase price.
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Not Enough Time House flipping in Austin is as time-consuming as slow-cooking a brisket. Finding the right property, fixing it up, and selling it takes time. If you've got a day job, you'll be spending your evenings and weekends working on your flip. Be prepared to invest the necessary time, or consider if sticking to your day job is a better choice.
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Not Enough Skills If you're a pro with a hammer or know your way around a plumbing system, you're in luck! But if you can't tell a Phillips-head screwdriver from a flat one, you'll need to hire professionals, which will eat into your profits. Make sure you've got the skills to tackle your Austin flip before diving in.
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Not Enough Knowledge To strike it rich in Austin's house-flipping market, you need to know how to pick the right property, location, and price. Brush up on tax and zoning laws, and be ready to learn about the local market. Knowledge is power, and in this case, it's the power to make bank!
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Not Enough Patience Just like waiting for the perfect slice of pecan pie, you need patience when flipping houses. Take your time finding the right property, and rely on a network of reliable contractors. Remember, profits aren't always as big as Texas, so be patient and smart.
Now that you've got the lowdown on what to watch out for when flipping houses in Austin, you're all set to ride into the sunset with a pocket full of cash. And if you need a partner in this venture or just want some more info, give me a call at 501-414-6187. Happy flipping, y'all!
April 26, 2023