Article  If You have a Flair for Renovations and Want to Make Some Quick Cash, Flipping Houses is the Way to Go! Who wouldn't like to make some extra money? While there are a few different ways to do this (taking on an extra job, selling belongings you don't need), if you have a knack for simple home renos and an eye for a bargain, flipping houses can give you some well deserved economic freedom.   House flipping is when you buy a house for the sole purpose of fixing it up and selling it for a greater amount that you purchased it for. Some people make a business of it, using the money that they make on the sale as a down payment on the next house that they want to flip.     A lot of people who flip houses buy an older or rundown home, do some major renovations, and sell it for more that they bought it. While this method does work, it can also mean a lot of elbow grease and money upfront from you.  You may need to hire contractors, subcontractors and even do some of the work yourself. What seems like a good deal at the beginning can quickly turn into a money pit.     Another option is to purchase a house that has gone into foreclosure. These sell at a discounted price and by doing a few simple renovations, like a fresh coat of paint, new flooring and fixtures, you can turn a pretty penny. And it makes sense that the less you pay for the house, the more money you can spend on renovations that need to be done before you sell.     Buying a house through a realtor and flipping it may seem like a good idea, but in reality there are better ways to buy a house that you plan on flipping. Houses that have gone into foreclosure are a great idea for an income house. Because the banks own them and don't want to, you can usually buy a bank owned house for a lot cheaper than market value. In some cases you can end up getting the house for pennies on the dollar. The banks aren't making any money off of the property when they own it, so they are anxious to sell. You also won't have to pay attorney fees or taxes and if there are any back taxes owed on the property, the bank settles up, not you.     Flipping houses can be a great way of making some money off of an income property.  Easy things like painting the rooms in neutral, appealing colors can increase a home's value by thousands of dollars. Updating appliances in the kitchen and the bathroom can also increase the price of a house.  There are lots of resources available to help you with flipping a house. The key is to spend as little as possible on the property while producing the best results.     When considering flipping a house, make sure to get an inspection done before purchase. If you are planning on major renovations, having a trusted contractor go through the house with you before you buy can save you a lot of money and heartache. You could have great ideas about the house, but if they can't be done, you may be left with a house you can't flip.     Flipping houses isn't for everyone: it takes a lot of time, effort and dedication. If you are up to the challenge, purchasing a foreclosed house can put you one foot ahead of the completion. If you start out spending less money that means that there is a good chance you will make more money in the end. Category Real Estate Author Admin Add To Favorites Print This Article Email Article To A Friend Post Comments   Rate This Article (0) 1 - Poor2345 - Good678910 - Excellent Added On 2010-01-26