For rehabbing to work, an investor must be able to find the perfect property to fix up and resell. If you want to know how to flip a house, you better learn first what house you should flip, as they say. While there are literally millions of properties for sale in the market today, fixer upper homes seem to be the standout. These are rundown properties that may or may not be occupied. They require some repairs and most home buyers will find them unattractive and even scary, but for home rehab investors, these are “diamonds in the rough.”

Here are some helpful tips when looking for fixer upper homes.

The first thing you need to do is to prepare yourself mentally for this task. Take note that you are searching for home rehab investment, not a residence. Therefore, your personal preferences and “soft spots” should not cloud your investing logic. Some properties may not seem to be a good residence for you, but they could be great investment properties.

Remember too that you are not looking for a perfect property or a “dream house.” What you want is a cheap rundown house that’s located in a good neighborhood. These houses will need repairs, that is why you need to “fix her up” right? So, be ready to see dirty and ugly houses.

Next, you should decide on where you want to search for fixer upper homes, which are also known as handyman specials. If you’re going to walk or drive around, be sure to select a small area only. Just select a neighborhood or part of the neighborhood that you can cover. This will allow you to scour it. Unlike huge pretty homes, handyman specials don’t draw attention. Some of them may even be covered by thick branches.

Drive or walk carefully so as not to miss these homes. So exactly what are you looking for? Here are some signs of a handyman special. One is, as earlier mentioned, surrounded by thick overgrown branches. These houses also have other obvious signs of neglect like ugly chipping paint, damaged mailbox, overgrown lawn. You’re lucky if you find fixer upper homes whose windows are boarded up. That means the houses is empty and is ready to be sold. And of course, don’t forget the “For Sale” sign on the yard.

If you will be looking for fixer upper homes in classified ads, look for the terms “handyman special,” “needs TLC,” “diamond in the rough,” and of course, “fixer upper.” You can also scan through community bulletin boards or online postings. If you’re searching for houses online, type “rebab list” on Google for a list of home rehab properties. You can also directly search “fixer upper homes.”

Another possible place to find possible home rehab properties is the city’s local listings of foreclosed properties. Some of these houses do not require much repair as typical handyman specials but they are sold at deeply discounted prices.

When you find a prospect home rehab, list down the address. Trace its owner and have it professionally inspected. If it’s good, start the negotiations.