Flipping?! Help!

I want to get started doing this, and I know that I’d be good at it, but I have some basic stupid questions for experienced people doing this for a while :

What adds value to the property? I guess what I mean is, after putting in new fixtures, flooring, paint, landscaping, doors, appliances, etc etc etc …when I am trying to sell it back : how much am I supposed to sell it for? What will a lender appraiser look for? Is there a % rule of thumb of how much money I can ask for the property?

When I buy the property, will lenders allow me to have a credit from the seller towards my closing costs that is actually more than my closing costs, so that i can get some cash back? If not possible, can the difference be called a repair credit or something?

How necessary is it to buy the property WAY below market value? Even if I buy it at asking price, wouldn’t the repairs and stuff make it a lot more valuable to sell for more?

Am I supposed to hold on to the property for a specific amount of time? If i complete the repairs in 3-4 weeks, can I sell it then? or before? or what?

There. 4 questions. Anyone has any food for thought?

Yup… all that stuff adds value. Another thing that adds value is how flexible you are to help people buy. Lease Option?

Most people use comps… comparable sales to guestimate their price. You can ask for anything you want… but if you go overboard… above 10% of the relative market value, the appraisal probably won’t make it for your buyer.

If you want more back at closing… just negotiate with the seller to lower the purchase price.

For buying below market… it really depends on your repair estimate… after repaired value, closing costs, accruing taxes, prepayment penalty, mortgage payments, insurance payments, desired profit etc.

You can start selling it before it even finishes. Tell the builder that you’ll give him 2k if he finds you a buyer.

There are probably some good articles on this site you may want to peruse about rehabs.

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