Looking for a way to make some cash?
Do you enjoy “Do it Yourself” projects, have an eye for design, and a knack for building things?
Or maybe you enjoy taking risks?
If you answered “yes” to any of the above questions, then flipping a house might be the experience for you!
“What is House Flipping”, you may wonder?
Purchasing a home for the purpose of “flipping”, or “house flipping”, involves an investor/investors who buy a new home with the intention of fixing it cosmetically with the purpose of making a profit. Typically, house flipping is done as rapidly as possible, with the goal of reselling the home quickly, for a much higher price than originally purchased for.
ATTOM Data Solutions shares that the average profit made from flipping homes in 2018 was $65,520. If you are willing to put the work in, there is certainly money to be made!
Tips for Flipping a Home
1. Find the perfect location! Do some research on the local neighborhood, crime rate, school districts, and top selling features that consumers and home buyers are currently drawn to. Flipping a home that offers trendy and modern amenities and features typically equate to a faster selling property!
2. Before purchasing a home to flip, be sure you properly evaluate the amount of work that will go into selling the home for a higher value. Often times investors can drastically underestimate the amount of time that will need to be spent repairing and renovating the home.
3. Be sure to estimate both the amount of manual and physical labor needed for the renovations, in addition to finances and resources. Create a budget for all areas of repairs and stick to it! Any time you go over the allotted budget, you are taking profitable dollars out of your own pocket!
4. Research local codes, permits, and zoning regulations. These can be a nightmare if not handled correctly. Take a trip to your local municipality office and acquire all the necessary paperwork beforehand.
5. In order to make the largest profit, attempt to purchase the home at the lowest price possible. Now is the time to try and bargain your way to getting your offer accepted!
6. Once you officially own the home, ask friends, family and co-workers for recommendations on carpenters, painters, electricians, and any other businesses you plan to outsource work to. Obtain a few estimates and ask to see samples of portfolios or previous jobs.
7. After the renovations are complete, work with an experienced local realtor to stage the home so that is shows beautifully. Designing the home with the top trends and styles will be beneficial in selling the home for the highest price.
8. Set a fair, yet aggressive asking price for the flipped home once you are ready to list it on the market. After all- making a profit is the whole point!
By following these tips, your experience as a “house flipper” is bound to be a success! Good luck on the adventure!