The homeowner flip is the best type of flip for most people. You can take your time to make repairs and upgrades. Home mortgage interest rates are usually lower when you live in the house than commercial loan rates offered to flippers who do not use the property as their personal residence. You do not have to be terribly organized. And, a big plus, under tax laws in effect when this book was published, you can sell the house and make up to $250,000 in profit if you are single or $500,000 if you are married and pay absolutely no income taxes on the profit.
So, what does it take to do a successful homeowner flip? You absolutely, positively, must remember that your house is an investment. Even if you do not have children, buy in a good school district, since this will be something that potential buyers may be concerned with. Before you buy anything for the house or spend any money on improvements, ask yourself two questions: (1) Will this purchase increase the value enough to pay for itself? and, (2) Is this a matter of personal taste that might not appeal to everyone else? This is probably the most difficult part of doing a homeowner flip. When I made a conscious decision to flip one of my homes, it was really hard to tell myself that I could not have a gourmet kitchen no matter how much I wanted one because the market simply would not support it. I would not have been able to get my money back on that expense, so it was not worth spending the money. If you are the kind of person who can keep your mind on the goal and do without the little things along the way in order to get a larger payoff at the end, you will not have any trouble doing this kind of flip.