7 House Flipping Tips for Real Estate Investors
Flipping homes is a lucrative business; it allows you to obtain significant returns on your investments.
It all comes down to finding and purchasing a property below the market value, fixing the flaws, repairing major damages, and selling the remodeled house for a substantial profit.
However, you cannot overlook the fact that house flipping is more hustle than glamour. It can be both, rewarding, and risky.
Therefore, it is essential to do your due diligence before investing in house flipping.
Here are the seven most important house flipping tips that you should apply to your next fix-and-flip project.
1. Plan it Carefully
When it comes to flipping homes, planning is the most important stage. Since renovating the run-down house is challenging, you will need to hire different professionals to revamp it perfectly.
You will need to interview the contractors and subcontractors. Besides, you will have to schedule meetings with architects and engineers.
There is a lot that you will need to handle when investing in home flipping.
That said, when you make up your mind for house flipping, make sure to find out the entire process, timeline, and all the costs that will be incurred.
It is important to mention here that you will also need to know the costs of getting permits in the city or country you are planning to flip. Once done, you will then need to create a timeline and budget.
In brief, make sure to plan the house flipping carefully before investing in.
2. Choose the Right Location
When it comes to investing in house flipping, most real estate experts suggest buying an old property in a highly-respected location.
So, if you are planning to earn a good profit from flipping, make sure to buy a house in the up-and-coming neighborhood. Moreover, do complete research to figure out the lay of the housing market.
Also, such locations will price above the typical selling value, which means your property will sell the house for even more after you have revamped it.
3. Inspect the Property
Buying a house sight unseen while making a spontaneous purchase can put you at risk.
Therefore, inspecting the property you intend to buy is of utmost importance. It will help you assess its condition and estimate repair costs.
By inspecting the property, you will be able to create an accurate and detailed budget plan that you will need for flipping.
In essence, inspection will help you make the sound decision whether or not you should invest in the property.
However, if you do not have a keen eye to determine all the major defects of a property, you may hire a professional for an inspection.
4. Avoid Buying the Property With Damaged Mechanicals
One of the most important flipping tips is that focus on properties that only need cosmetic improvement and not mechanical repairs. Buying a home with damaged mechanicals will have you lose money.
A property that has drastically damaged electrical or water system will require a hefty amount to be invested in to obtain good ROI.
Therefore, do not buy a home that needs a new roof or has foundation problems. Instead, focus on the properties that can turn your investment into a healthy, profitable option with minor improvements.
These may include adding a fresh coat of paint, replacing window treatments, installing new carpet, or refinishing hardwood floors.
5. Don’t Overdo the House
After buying the property, you will be planning for the renovation. At first, you would be tempted to add high-end touches and timeless details.
But, later you will realize that spending so much on renovation will not fetch a substantial amount of profits. A successful flip is one that has not undergone too much improvement.
Put, the more you spend on enhancing the appearance, the higher you will need to price the property to make a reasonable profit.
Not to mention, you will probably find it quite challenging to market the pricey home. Therefore, make sure to stick with the basic features and essential repairs in your fixer-upper.
6. Improve the Landscaping
Sometimes, house flippers overlook improving the curb appeal. No matter how much attractive the home interior is, an unappealing home exterior can drive away potential homebuyers.
That said, it does not mean you will have to spend thousands of dollars into improving the appeal. Manicuring the lawn, removing the mulch, and adding flower pots will not cost you thousands.
7. Determine Your Potential Leads
It is one of the most important aspects to factor in while investing in flip homes. Whenever you are planning to buy a home, make sure to know who will be your end-user.
That means who will buy the property from you that you are investing in. Once you have decided the target audience, you will need to know what they expect to pay.
Furthermore, try to know your potential buyers’ ideal price point; whether they are on the higher end or lower end price point of homebuyers. This will help you tailor the home improvements and renovations according to the determined price point.
Then, you will be able to spend money and put efforts accordingly.
However, finding leads can be intimidating; REIVault with its team of experienced real estate agents can find the right leads for you.
House flipping is not as easy as it seems; there are many risks involved in fixing and flipping the run-down houses.
You need to be very diligent when investing in such a real estate. If you do not pay attention to crucial aspects, you might experience a drastic pitfall and lose your investment.
However, house flipping can bring hefty profits when you know what to do. Using the house flipping tips mentioned above will help you turn your real estate investment into a healthy.
Fortunately, you can work with a dependable real estate company and avoid all the hassles, challenges, and difficulties that can come with house flipping.
REIvault provides you with an experienced team of real estate agents to help you market your flipped property. All you have to do is to close the sales, and REIvault will manage the rest.