Flipping homes is an involved process and a hard hustle – not quite as easy as HGTV makes it seem.
With the right people and guidance, it can be very lucrative. Research and really knowing the game is key, so consider these tips when getting into the house-flipping game.
Know What You’ve Got
When you acquire a property ask “What is my home worth?” This will dictate the types of improvements you want to make to it, and therefore your budget.
Research and Follow the Laws
Make sure you acquire a building permit before starting work. Be cognizant of local codes when it comes to building, as well as the amount of space you actually have to build on.
You don’t want to be on the other end of fines, or even lawsuits when you should be concentrating on flipping your home.
Don’t Go Overboard
You may be tempted to go all out when remodeling a home for resale. Fight the urge to do costly, high-end, or trendy renovations.
The more money you spend, the higher you’ll have to list the home price. Stick to essential repairs.
Be Open to Calling a Professional
You might be of the mind that you can do all the work yourself. As long as your budget allows it, it’s totally ok to call in a professional. In fact, this may save you more money in the end in the event that your DIY attempts don’t pan out the way you hope on the first try
Call a contractor for full kitchen and bath renovations, electrical wiring problems, plumbing, and HVAC repairs, and room layout changes.
Don’t Gloss Over Curb Appeal
A first impression is important for potential home buyers. While you may be concentrating on working on the inside, don’t forget the outside.
Mow the grass, trim the hedges, and plant colorful flowers to please the eye upon first viewing.
Maintain Reliable Income – At Least to Start
The real estate market is a volatile one, and while you may want to become a house flipper full-time, get a few successful sales under your belt before giving up your 9-to-5.
Don’t Buy Homes with Large Damages
There is more of a risk when buying a house with things like a roof badly in need of replacing or a faulty hot water heater, as opposed to a property that could use a cosmetic lift.
Focus on homes with lower-cost improvements that will provide a big impact.
Know Who Your Buyer Is
Take a good look at the neighborhood around you. Is it a safe space for families to settle into? Is it a bustling area with much to do that’s a great fit for young professionals?
What is the average home cost in the area, and how does your property stack up?
Knowing your potential buyer will help dictate the kind of improvements you make on the property as you prepare to flip it.
Build A Good Team
Network and research to find the best contractors and real estate agents. Having a reliable team in place will make the process that much easier.