> 1. Deals that take too long. We try to do quick-turn deals so that we are always buying and selling in the same market. This means projects that are from start to finish less than 6 months. Going longer than that and you risk selling your property in a different market than you bought it in. > > 2. Buying houses that most people don’t want. When you flip a house you want to have the biggest buyer pool possible(matches in MLS). This means that ideally that you want to flip properties where most people can buy them. In my opinion, this means avoid buying luxury properties where the buyer pool is tiny – and also avoiding the types of houses that most people don’t want. > > 3. Buying properties where there aren’t solid comps. These can be “unique” properties or properties that are very rural – as two examples. If you can’t find multiple solid properties for a property, avoid it. > > 4. Properties with tenants in them. Buying a flip property with an existing tenant in it is very risky. They may decide not to allow you to show the property or something much worse. > > 5. Properties with major negatives that don’t show up by looking at the comps blindly. One example of this is a property with very low ceilings. My rule is that if I can touch the ceiling standing up, it is an issue. You can’t buy a house with 6-foot ceilings with a comp that has normal ceilings. This is just one example, but there are many others. > > 6. I could give more examples, but rather than continue with the examples, I will give you some principles. 1. The best deals don’t need to be overanalyzed – they can be done on the back of a napkin and are obvious. 2. If you have to talk yourself into a deal, it’s not a deal. 3. If you don’t think most people would like the house, avoid it. 4. If most people can’t afford the house, avoid it. 5. Cookie cutter is better than unique.
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