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Flipping homes has gained popularity in the 2000’s. Older neighborhoods in close proximity to cultural and thriving business districts have been a hot market for those wishing to buy up properties, remodel them and sell them for a profit. The housing crisis of 2008 further increased the popularity among real estate investors. The number of foreclosed and distressed homes increased and opened doors for investors to flip homes and earn reasonable profits.

However, in a bid to earn the profits, real estate investors sometimes neglect the basics and end up making expensive mistakes.

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Financing: The costs involved in flipping are high. The first expense is

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