Good flips and rehabs can bring solid return on investment, but agents, home inspectors and appraisers agree that adhering to a simple list of House Flipping Do’s and Don’ts can make the difference between turning a profit and turning your dream into a money pit.
5 House Flipping Do’s
1. Do shop in an Up and Coming areas. Location is key! The up and coming areas sometimes are the best profiting areas to invest in. Think of the sub-cities find areas with lower home prices, lower tenant turnover, lower costs, and sometimes fewer legal issues to deal with.Only invest what the property is worth. This means, if the house is only worth $60,000, don’t worry about granite counters and tile floors. Use inexpensive materials that spruce up the place and make it look nice.
2. Do Consult contractors before you buy.You want as few surprises in costs as possible when House flipping. Consulting a contractor to estimate cost of repairs before buying a house to flip is important. You do not want to be making wild guesses on repairs because that will then cause you to go over on your budget.
3. Do try simple DIY projects. What projects do you think that you can do? Simple DIY projects are a great way to save money and hone your skills for future flips. “Projects you can do yourself are things like painting, tiling, landscaping, demolition of walls, cabinetry and old flooring.
4. Do pick a budget and stick to it. This is very difficult to accomplish, and few investors are able to come in under budget until they get a great deal of practice. It seems like there is always some “surprise” that comes up that will eat into your profits. You need to keep track of all your numbers for each project. Taxes, interest, maintenance, and remodeling are some of the areas to keep track of. You need to have a strict number set for your formula of what you are wanting to profit from your flip.
5. Do stage your finished flip house. Staged houses sell much faster than vacant houses. Home buyers for some reason are short an imagination. Most can not picture their furniture in a home or see the potential for this house becoming a home.