Real estate investor new to the business seeks advice on how to buy great flips or rentals!!?

I am considering a career in buying under-valued homes, rehabbing them and flipping them or renting them out. What is a good rule of thumb or financial formula do investors use when determing what homes would make a great rental or flip?Real estate investor new to the business seeks advice on how to buy great flips or rentals!!?
If you are a speculator (which is what a flipper is) there is always the chance of losing money, so buy and repair on a cash basis so you don't get stuck upside down on a mortgage. And don't over-extend if you don't know what you're doing.Real estate investor new to the business seeks advice on how to buy great flips or rentals!!?
The best rule of thumb for someone without much real estate experience is to team up with an experienced buyer鈥檚 agent. They can help you sniff out the deals, advise you on what upgrades are appropriate for the area, and help you estimate the potential resale value. If you maintain the relationship so this agent knows you鈥檒l be a steady stream of business, you may be able to negotiate lower listing commissions as you sell your projects.
Currently investing in flippers is not a good idea. Unless you like to spend your money and end up losing your fix up funds.


With homes still being devalued do to the forclosures.


Rentals are a good sourse of later years of income. If you indeed place a 20-30% down payment and get the rentals below market values you will be good to go...You could also get partners in the venture as well this will keep your out of pocket expences down.