Budget

• Prior to buying a house or condo that you intend to flip, decide on a strict budget. Know the maximum amount that you will spend on the down payment and closing costs, repairs, expenses for holding the property until you find a buyer and the costs of selling it. Spend only the amount that you can afford and no more.
  
  

Inspection and Repairs

• Hiring a licensed inspector to write a comprehensive report on the property can ensure that you will not have financial surprises after the close of the transaction. Also, asking a contractor for repair estimates will help you determine if the house fits your budget. It's possible that the repair phase will cost an inordinate amount of money. Settle on homes where the repairs will not be too time consuming or costly. Fixing foundations and plumbing systems may be too much to tackle. Required repairs should be cosmetic in nature, unless you are buying far enough under market value to cover the costs.
  
  

Property Taxes

• In many counties, property taxes are reassessed either at the time that the property changes hands or during that year. Sometimes supplemental tax bills are processed and a large amount of money is due for the time that you have owned the house. The best way to remedy this potential loss is to call the county assessor's office where the house is located and ask how much the taxes will be if you buy the house for a certain price. You will be given an estimate, which will help you determine if you can afford the house while it is vacant. Also, find out how often houses are reassessed in the area, so that you can plan for future appreciation, if you hold it long enough.
  
  

Resale Pricing

• Be realistic about the value of the property once repairs are made. Know the area market values and the current appreciation or depreciation rate to make your best estimate before you sign a sales contract. When you are ready, you want the house to sell quickly to mitigate lost money in mortgage payments, taxes, insurance and upkeep expenses each month. Price the property realistically and close the sale quickly.