When you're purchasing a house to fix up and flip, you want to be sure that you're making a sound investment. At first, you may need advice from a few consultants--building inspectors, for example--to determine the approximate cost of fixing up a house. A few simple tricks, however, will allow you to quickly ballpark the repair costs of your flip in order to determine whether or not it will be a good investment for you without bringing in an inspector before you're committed to the purchase.

1. Have a Calculator On Hand

Using a calculator that will put together a repair cost estimate will allow you to put in the repairs that you think need to be completed on the house, then get a ballpark figure for what it will cost to complete those repairs. This calculator incorporates a wide range of needed repairs to offer a decent estimate of what it might cost to fix a given house.

2. Add It Up Yourself

As you walk through a house, take a look at all the things that need to be fixed up. Then, look up the price range for those repairs. Average the "low cost" of repairs with the "high cost" to get a reasonable estimate that will tell you approximately how much it will cost to fix up a house. Leave room for price fluctuation: some materials are less expensive at some times of the year than others, while bringing out a professional may cost you more when other homeowners in your area are dealing with serious repairs than at other points. If you're planning to completely gut the house and start over--an ambitious project for a beginner--assume an estimate of around $20-$40 per square foot.

3. Bring in an Expert

Here's the reality: accurately measuring the cost of repairs on your fix and flip home yourself can be a challenge. Sometimes, that will work in your favor--guessing that you'll have to replace something that can actually be repaired fairly inexpensively, for example. In other cases, you may find that your estimates are far off, leaving you with an expensive repair that is fast draining the profits out of the house. If you can't afford a lot of margin for error, hire an expert to help estimate the cost of your repairs. It may require an up-front fee, but it will also offer a much more accurate number.

If you're ready to get started with fixing and flipping properties, we're here to help! Contact us today to learn how our financing will benefit your fix and flip efforts.