Top Tips for First-Time Flippers
If you’re looking for a creative outlet and investment opportunity all-in-one, flipping a house can be an excellent choice. If you’re going to pursue a flip, you’re going to need a large and flexible budget. This is because of the numerous upgrades and renovations that you will have to go through, including the many variables they’ll pose along the way. In this blog, we’ll touch on what to look for in a house, including some tips and tricks to get the best return possible.
You’ve probably heard the term “buy low, sell high” when it comes to investing. Real estate is no different. When you’re making offers, make sure to place close attention to the comparables in the same area. You don’t want to buy the most expensive house in a neighborhood because there won’t be any room for adding value. Look for the cheapest house in the best neighbourhoods.
When you’re looking to flip a house, the best houses are those which show the effects of time, either physically through their outdated appliances and systems, or stylistically through the architecture and the design choices made by previous owners. Features like these are easy to upgrade or replace through renovation and the purchase of newer models. Keep in mind that making these upgrades likely requires professional assistance, which will increase your total cost.
Consider browsing houses that have been on the market for an extended period of time. Find out why, and research how much it would cost for them to be renovated. If the cosmetics is the only thing keeping buyers from acting, that should be your cue. It’s especially important to hire a home inspector if a property has been on the market for a longer period of time as it could uncover other more costly reasons that the house may not have sold yet.
In order to ensure you come out with a profit, it’s critical that you weigh your upgrade options and consider what will provide you with the best return on investment. Create a budget including a timeline of each upgrade or renovation that you aim to complete. Always make sure to include a hefty contingency fund. The more renovations you do, the more likely you are to run into unforeseen issues. No matter how much you prepare, there will always be a few things you just can’t know until you’ve begun.
Think not only about the inside of your house, but also consider the surrounding property. Try building an outdoor structure, or replacing the deck with something newer or more stylish. Consider remodeling the garden spaces, driveway, walkways or landscaping. If there are any trees on the property, consider their age and what shape they’re in. If they warrant removal because of potential hazards, you’ll want to remove them and plant new ones.
(Article by royallepagekelowna.com)