Should You Flip Homes? House Flipping Tips + Choosing Real Estate Agents | JEN TALKS FOREVER

Should You Flip Homes? House Flipping Tips + Choosing Real Estate Agents | JEN TALKS FOREVER


hi I’m Jen and I wanted to say thank
you for all the feedback and comments and questions about previous videos I
did talking about flipping homes with my husband well yes we have made money
flipping homes I also wanted to talk about some of the downsides and share
what kind of qualities I think people need to have if they do indeed want to
find success in flipping homes because I don’t think this is for everyone and
also to answer some questions some of you guys may have had so again thank you
for watching those videos and I know sometimes you can see a video and see
title like hey you know I made sixty eight thousand dollars on my house which
I did but again I tried to break down the numbers the best I could to explain
not all of this was profit some of it was the cost of investment and also our
down payment and I would say I don’t think flipping homes is for everyone in
fact I would say flipping homes probably is not for most everyone so some of the
qualities I think you need to have if you’re going to flip homes are at least
one of you needs to be handy and not just like I can do a weekend project but
like really understand electrical issues foundational things you can walk into a
house and pick out problems like that’s something my husband has clearly I am
NOT the handy one in the relationship I’m better with numbers and budgeting
and you know more actionable things like that like making phone calls or trying
to hire somebody but my husband is the one he can really do home repairs home
renovations and he’s really got a talent for figuring stuff out like that so this
is not something that if you do not have that quality or if you are not partnered
with someone that does I would not recommend home flipping or trying to do
anything like that you know again there are those investors like the ones with
millions or billions of dollars and they can hire people to do that work for them
so again that time and effort is worth our money but if you’re someone that’s
doing this yourself like if you’re going to try to buy a home and live in it
while you’re doing it if you or your partner is not handy do
not do this just just don’t do it another skill that I think would come in
handy that we don’t have but luckily we were able to find a great expert is
having a very good insight of real estate if one of you is a realtor or a
broker I think that would be very helpful because you could do some of
your own deals we did find a realtor that was really wonderful her name is
Melanie Atkinson she’s in Florida I will link her information below if you are in
the Tampa area I would say she I would say she’s the best hands down I’ve
worked with several Realtors and she’s she’s my number one pick I will say that
so she in qualities that Melanie had that I think really helped us is she was
very pleasant to work with but she was also very aggressive when she needed to
be a tough negotiator and you know she’s one of those people that really works
extremely hard and makes sure that everything is taken care of she was just
extremely reliable but again I think sometimes you can meet a realtor and
they’re like – nice I think that is a thing and I’ve mentioned this in another
video but I would I would really stay away from hiring your friends and your
family they may be a wonderful realtor but if something goes awry and you don’t
want to work with that person it’s a lot harder to sever that relationship if
there’s someone you know personally so I would actually stay away from doing the
friends and family thing the Realtors we’ve worked with and again we’ve found
two good ones Melanie and then Lindsey Kessler here in Atlanta we I found them
through former co-workers and again they were not for friends of mine and in fact
the co-workers that were that recommended to them to me you know again
we were not like best friends they were the great people and we have a
relationship but again the person they’re recommending I did not feel a
close personal ties to and I think that’s important in choosing areolar
again you want someone who’s very aggressive Pleasant but also tough and I
think that’s something you need to look for if you’re looking for an outstanding
realtor so again yes what you need to be handy at least one of you
and finding a good realtor or being a realtor is another factor and you’ve
seen the video talking about my forty-seven thousand dollar house and
that’s another thing is if you’re going to do this you you may not have the
nicest property for your first second or even third home you again may have to if
this is in your budget by a fifty thousand dollar house or a sixty
thousand dollar house and it may not be like your dream house but you can’t
think of it as your forever home you need to see it for what it is is that it
is a future investment and you’re just living there for now so in the houses
we’ve lived in I did not really personalize them I didn’t put any
features that were to taste specific and every decision we made when doing
somebody that to the house was what will this do for resale value you know I
didn’t put up crazy wallpaper or borders or like personalized stuff all over the
place in fact I don’t even put up pictures so that’s something that I
think has helped us to not get too attached to the home and when they’re
selling it I didn’t have to take down all of the personalized items because I
didn’t have any and you have to be willing to live in situations that may
not be super comfortable especially when you’re living through a renovation we
lived without a kitchen counter for about an entire year so if you’re the
type of person that that that just really messes up your world and you
cannot live in clutter you cannot live in the middle of a construction zone
then that’s something again that flipped the flipping house life may not be for
you one big thing I would tell to anyone that’s interested in flipping houses is
to buy a home or property that’s well within your means don’t buy too much
house for instance again we bought a forty-seven thousand dollar house and
the mortgage was five hundred dollars this last house we bought was 169 and
that was actually more than we wanted to pay we were actually hoping to find a 70
thousand dollar house or an $80,000 house and it was just hard to find one
with the qualities we needed and also if it’s your first time I would not shoot
I would not choose a home that’s maybe older than 20 or 30 years because
anything older than that I think you’re going to run into a lot of maybe
unforeseen problems and older homes just need more work that’s just something
about him just because of the age of the home you’re gonna have more repairs more
fixes ideally the type of property you’re looking for is maybe maybe
between 10 to 15 years old at most and only needs cosmetic changes so again
nothing that needs a new roof new foundation you know foundation issues
anything that’s too major you are looking for something again I know
people say I want a house with good bones you really do need a house that
has good bones and won’t require a lot of extensive repairs or fixes because
that’s something that buyers won’t see the value you put into they will see the
new kitchen or bathroom you put in but again if you replace the electrical in
the house that’s something that’s not going to get you as much resale value
because you won’t get your return on investment because again that’s not
something that a potential buyer can see so those are some of the like items we
look for when we’re buying houses are looking at properties like our strategy
for the first house was basically buying the cheapest house in a neighborhood
that was okay again the neighborhood we were going it wasn’t super fancy but
again it we felt somewhat safe there we did have security cameras and a security
alarm system but you’re not looking for a million-dollar house probably not for
your first second third property you’re looking for something that is very
affordable and the other thing about that is buying a home that’s well within
your means will allow you to have a little more breathing room what if one
of you loses your job and you can’t afford the payments anymore you want to
be in a situation where even if you suffer job loss or some sort of other
economic hardship that you can still pay your mortgage and not lose your house
and I do want to talk about the financial side because it is extremely
important there is a lot of risk when it comes to buying and selling houses so
please make sure you really fully understand the way
of this decision it’s a big one for my first house I had bought a condo in El
Paso I paid sixty four thousand dollars for it and I ended up selling it for
around 85 and I did nothing to the condo I knew nothing about houses in hindsight
I actually probably should not have bought that house I was only making
twenty five thousand dollars a year and my mortgage was about I think it was
about five hundred dollars and then there was a like a hundred and seventy
dollar a month HOA fee I was only able to do it because I had a roommate and
then I ended up getting a job in Florida and had to move in like six weeks and
thank my lucky stars that house actually sold within a month so I got really
lucky and that situation could have gone south really fast so I really just chalk
up that first transaction to being pure luck I didn’t know what I was doing I
was not married to James at that time I was not handy and I really we were just
in a market where things were appreciating and I sold the condo in
2007 right before the housing collapse so again that’s something else you have
to keep in mind is if you purchase a property now what if it goes down in
value two years from now can you can you eat that cost can you suck it up you
don’t know what’s going to happen with the economy or with housing prices so
again that’s something that’s really that’s a factor that’s really out of
your control but one that you really need to think about so again that’s goes
back to the importance of not buying too much house so if you buy a $400,000
house and it’s only worth 250 in a couple of years what are you gonna do
seriously what are you gonna do and I do want to say I think it’s super important
to have a very large substantial down payment or if you can pay for a house in
cash if I had say a hundred thousand dollars in cash right now
I would rather buy a seventy thousand dollar house in cash then put a hundred
thousand dollars down on a four hundred thousand dollar house having a having no
mortgage will free up so much money for you to cashflow your home
and to really lit live a lifestyle that’s a lot more secure and less
stressful and the other thing about that is if you are paying all cash for a
house it might help you get better deals if you’re looking at foreclosures
transactions like that the seller will is in the seller in most cases are banks
or mortgage companies they prefer cash buyers every single time so again you’ve
probably seen homes like you know fixer-upper flip or flop you know those
sorts of shows and yes it looks exciting and glamorous and the reason that people
like Tarek and Christina from from flip or flop were able to get better deals
and houses is because they were paying cash so if you can avoid a mortgage if
you’re in a position to do so I I can’t highly recommend that option enough in
fact we are really hoping to pay for our next house in cash we do have some money
saved up and we’re hoping to save up more so we if we can get as close to
paying cash as possible or paying cash that’s the option we’re going to go in
our next house is going to be less expensive than our last house so these
are just some thoughts I have about flipping homes if you have any questions
or comments feel free to leave them below I just wanted to really stress
that again flipping houses can be a good way to
build wealth and generate some side income with alongside anything else
you’re doing but it is extremely risky I would not recommend it to most people
and I think there’s a lot more to know about it than what you see on the
surface so I will see you guys next time

10 thoughts on “Should You Flip Homes? House Flipping Tips + Choosing Real Estate Agents | JEN TALKS FOREVER

  1. I've ALWAYS wanted to flip a home for quick cash! But, my hubby & I simply don't have the time to renovate! You are totally right– it has to be more than just a quick weekend project!

  2. I love the idea of flipping homes! Ultimately I think we are more of a buy and hold rental property family instead. At least… that's the plan! But I still love hearing about flipping houses.

  3. Honestly I really enjoy your flipping homes and financial talks but the other videos I'm not as interested in. I wish your channel had less variety actually so it's more cohesive to want to subscribe

  4. Great tips !! HGTV definitely makes flipping homes “romanticized” so the hard truth about flipping homes was refreshing !!

  5. If you're looking for a great real estate resource, our Tampa/St. Petersburg area Realtor Melanie Atkinson has a YouTube channel – Melanie Loves Tampa Bay with very helpful videos about home buying / selling / ownership!

    https://www.youtube.com/channel/UCBZwB1EpTy5wd0_bKPsMReA

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