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Plotting your course well in advance

Formulating a backup plan

Our goals can only be reached through the vehicle of a plan. There is no other route to success.

—PABLO PICASSO

Before making an offer on a house, know how you’ll profit from it. Will you buy it at a bargain and resell it immediately at market value (or for less, to sell it faster), do a quick makeup job and resell it, perform a few major renovations, or fix it up and use it as a rental? Each of these strategies has benefits and drawbacks, but each strategy is a perfectly legitimate way to flip property for a profit.

This chapter explores several house flipping strategies and encourages you to develop your own strategy based on your neighborhood, the resources you have at your disposal, and your preferred approach.

Deciding on the Role You Want to Play

Flipping a house generally involves buying it, fixing it, and then selling it, but you can profit from this overall process in various ways — depending on how involved you want to be in each of these three progressive steps:

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