I bought Find It, Fix It, Flip It! when we were thinking about selling our second home. Although we hadn't planned it, we had held our first two houses for about two years and then sold each for a nice profit. With our third home purchase we went into it with the plan to flip it while we lived in it and then sell after two years (to avoid capital gains tax).
This book helped give me structure with what I should be looking for in a home to flip and how to know if it will result in a profit. Time will tell when we sell our home, but the tips in this book were super helpful and helped us lay out our budgets and goals.
Here are a few of the most helpful tips within this book:
- Profit Calculator Chart: This chart helped provide clarity around our profit based on the purchase price, the budget we had for the renovation and the price we wanted to sell the house at.
2. The Six Levels of Improvement: This book details each level of improvement and helps you determine what you want to fix in the home you are flipping.
3. Fix It Hit List: I found this list extremely helpful and used it to help determine the budget we would need for our upgrades in our current home. The projects have evolved already, but this list helped give us a good idea of the cost for each upgrade prior to purchasing the home. The image below shows the first part of the list they provide (there are about 4 more pages of items on this list) but it gives you an idea of how it is set up.
If you are interested in flipping but do not yet have a house, it is fun to practice with homes for sale! Before we purchased our house, I looked at few homes and went through the check list to determine the renovation budget and then calculated the future potential profit based on the sale price. You can see how much you would make and then tweak your renovation list to make a larger or smaller profit. :)