An investment property needs to have its value estimated before being purchased by those who want to renovate it. While there are many ways to do this, there are three popular ways that most professionals use. Read on to see the methods that can help you make a sound decision when purchasing a fix and flip property.

Hire A Professional

You might not be sure about how to estimate a property’s value or know what features might cause problems. In this case, rely on the expert advice of a professional. They can give you sound opinions on why or why you should not invest in the property. It will also take them less time to make a judgment on the property. While it will cost more since they are experts, you can also be confident that they know what they are doing. You will also save time and money. If you decide to buy an investment property without an expert’s advice, you could run into costly issues down the line. 

Do It Yourself

You can do a fix and flip property estimate yourself. You might not have the money to hire a professional, and you feel relatively confident in your abilities. If so, this is an option. However, be aware that while you have saved money, you may lose time because professionals can work quicker and more efficiently. You also must be sure you know what to look for so you don’t make a costly error. However, if you have some training, doing it yourself is a viable option. 

Try the Rules of Thumb Method

This method is a combination of the first two. You do it yourself, but you use high-level data. This data can approximate the results that you are trying to analyze. The method is fast and somewhat accurate. However, keep in mind that it is not always thorough. You may miss an important detail about the property that can end up costing you. If you can’t hire a professional and want more speed than estimating alone, this method could help you decide about the property. 

A fix and flip property should always have its value estimated before you purchase it. A somewhat accurate estimate could let you know how much work you need to put into it. Use one of these methods to help you make a sound choice about whether or not you should invest in a property.