Spring Flipping (Houses)
Home prices are continuing to rise and although it may be a deterrent for some potential buyers, it hasn’t scared off those investors looking to flip a house. We can thank the banks for helping investors jump back in, as banks are offering better financing options for house flippers.
Are you looking to start 2017 with a new investment and exciting challenge? House flipping can be an incredible way to grow wealth fast, but like many things there are always risks involved. If you’re planning on flipping houses for fun and to make a profit, then it could be just what you’re looking to get into this year. So, where do you start?
Professionals say, look at the whole picture first so you can get an understanding of what is involved before jumping right in. The first step in any real estate venture is to commit and ensure you are ready to go the distance. Once you have found the perfect house to renovate as a rental property or for resale, it’s important to get the best price possible. Always stick to your numbers and get ready for the fun part to start.
After a thorough inspection has been made, it’s time to find a great contractor. If work is needed on the properties, hire a dependable contractor. Create a realistic scope of the work you want done on the house, making a detailed list of everything that needs to be completed on the project in order for it to rent out or sell. A qualified contractor will review the list and be able to give you a proper quote on these tasks. You want to ensure your “to-do” list isn’t much more expensive than anticipated, or you will lose out on the entire purpose of a house flip - profit!
Be sure to get all quotes in writing and get them in detail. If a contractor says they will replace the countertops for $2,500; does that include the island? You need to get down to the nitty-gritty, as every penny counts when it comes to house flipping. A good contractor will set out a schedule with you. Many times, low-end contractors take too many “dead days” where nothing gets done. This can be extremely frustrating for anyone completing a renovation, but especially for someone who has purchased a property for financial purposes.
Once your remodel has been completed, the final tasks are to list it for sale or rent, accept an offer and give yourself a pat on the back for your first successful house flip. Good luck with your new adventure and don’t forget to call Taylored Restoration for all of your reno and inspection needs!