How Do You Make Money on Houses?

I see a lot of those programs on TV which talk about flipping houses. It is pretty plain and straightforward at the most basic level. You get a house that needs a little work, then you paint the orange county shutters and do some landscaping. You have to think about a lot of things which are not all that obvious however. It is never so simple as some of those talking heads on TV make it out to be. Of course the one thing that is really going to make a limit to most houses is location. For example if you buy a house and do everything that can be done to make it more valuable, that may not really make much difference if the houses to either side are shacks. If the guy next door just has a bunch of junk laying around, that is going to have a very negative effect on the value of your house. Anything like that is going to hurt you. The worst thing would be if the place is in a poor neighborhood with significant crime rates.

All of the things that you consider about the house and the location are hardly the real story. That is found by looking in the mirror, figuratively at least. You have to think about your own merits and capabilities. In theory you can learn how to do any job, but that does not mean that you are going to be able to do it efficiently. The real problem is going to be if you try to do more than you really can manage. That would lead to a situation where you waste a lot of time and money failing to do what you try to do, then you have to turn around and pay some other guy to do it right.