Flipping a house is the process of buying an inexpensive property, making repairs, and selling it for a profit. It’s a way to make money that can be challenging. If you’ve been thinking about learning how to flip a house, here are a few tips and tricks that can help you decide if this type of project is right for you.
Know About Renovating
To be successful at flipping a house, it’s helpful to know about remodeling. To make the most profit, you’ll need to do a lot of the work yourself. However, you also should be comfortable working with builders, electricians, and other contractors during your project.
It’s good to know about how much a project will actually cost. You might guess that new hardwood flooring will cost around $4/square foot, but do your research and explore options. Can you install the flooring yourself? How much will it cost to hire a crew for installation? It is easy to go over budget when renovating a home.
Pay Cash for the House You Want to Flip
For the biggest profit, investing in the project with cash is the best way to go. You’ll avoid finance charges and interest payments at a time when you’re trying to make money. Plus, by paying cash for the project house, you won’t be in a hurry to sell. You will have the option to let it sit on the market until you’re able to get your asking price.
Understand the Market
Successful house flippers generally have a real estate or construction background, preferably with experience in both. It’s important to be able to spot a good deal on a fixer-upper.
An inexpensive property in a neighborhood of $200,000 homes won’t resell for much more than the average of the homes around it. In that type of market, for example, a complete kitchen remodel doesn’t make sense. Don’t put $40,000 into a complete kitchen remodel for a home that will only sell for $225,000.
Make a Budget to Flip a House
You know the asking price on the house you’d like to flip. Next, develop a budget for the repairs and improvements. It’s important to know what projects will provide the greatest return-on-investment. Make a plan for scheduling the repairs. In order to be profitable, a flip usually needs to happen within a few months. Can you reasonably make repairs within your budget and sell the home in 4 to 6 months? If so, this is a good house to flip.
What to Look for in a Property
To successfully flip a home, it must be a sound investment. The best type of home is in a desirable neighborhood and it’s in good condition, with no foundation issues, structural problems, insect damage, or mold growth. Finally, the home should be priced below market value to be a good prospect for your project. If you’ve found a property that fits the bill and you have the money and energy to invest, you might be ready to flip a house.
Premier Inspection Services serves Upstate New York with home inspection services, including pre-listing inspections. If you’re preparing to sell a home, contact us to schedule an appointment.