Buying and flipping Metro Detroit homes – how to be profitable

One of the keys to being profitable when flipping Metro Detroit homes is buy homes that need the least for the less.  Sounds simple doesn’t.  Get a rundown house at a very cheap price that has the major items done.

What I mean by that is you want the big cost items or the majority of the big cost items done.  Or in good shape.   The six major items you should be looking at

  1. Roof
  2. Furnace
  3. Windows
  4. Basement
  5. Updated Kitchen
  6. Updated Bathrooms

A roof even for a small house is going to cost $4000 and up.  A furnace in Metro Detroit is going to range from $3,500 to $4,500.

Updated windows are very important.  Metro Detroit home buyerswant good windows.  You can figure at least $250 – $300 for a standard size window.  Doorwalls can cost $1500 – $2000.  Large picture windows can be expensive.

A dry basement is important.  There are two main types of basements in Michigan.  Block basements and poured wall basements.  I think a poured wall basement is best.  They are usually easier and cheaper to fix.  Rod holes cost $25 - $50 a hole to fix.  Cracks in the wall cost about $450 – $500 to fix.  Sometimes block basements are so damaged that you don’t want to buy the house.  Block basements can be leaning in and need major bracing.  It can cost $5000 – $10000 to get block basements fixed.  So buying a Metro Detroit home with a good basement is very, very important.

Of course when flipping Metro Detroit homes an updated kitchen or updated bathroom is a extra bonus.  Especially a kitchen.  Look for newer kitchen cabinets.

Other items that are nice to have are:

  • a newer hot water heater
  • a good/decent driveway that is not heaving or all cracked up
  • a deck or patio in average condition
  • hardwood floors are easily sanded and refinished
  • carpeting in good condition

Remember every thing you don’t have to buy or re-do when flipping a Metro Detroit foreclosure is a bonus.  It is money in your pocket.  So create yourself a check list when out shopping for a good house to flip.  I hope this gives you a little information on what to be looking for.

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My thought of the day is:

When you look at the world in a narrow way, how narrow it seems! When you look at it in a mean way, how mean it is! When you look at it selfishly, how selfish it is! But when you look at it in a broad, generous, friendly spirit, what wonderful people you find in it. -

Horace Rutledge

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