Based on TV shows like Home Town and Flip or Flop, the idea of house flipping seems exciting, fun, and yes, easy. But is it really? If you’re thinking you’d like to try this unique method of real estate investment, there are a few things to keep in mind.
Here’s what you need to know.
How It Works
Typically, house flippers purchase distressed properties and then make a profit by renovating and selling them. They frequently find these properties through short sales and/or foreclosures.
Where To Start
First and foremost, make sure you know how much you can afford to pay, and how costly repairs and renovations are going to be.
A Word About Financing
In most cases, you’ll need to secure a mortgage in order to purchase a house.
Your Time Investment
Plan to spend a minimum of 6-12 weeks on the whole process of buying, renovating, and selling a home. If there are any delays, it can take even longer.
Knowing Your Skills
If you’re skilled in the areas of real estate and/or construction, you’ll be more successful as a house flipper. There is a lot of things you can do yourself to save money, however there can also be many items that require licensed professionals which is more costly.
Researching the Market
Pay attention to the selling price of other homes in the neighborhood where you want to flip. Figure out your budget and don’t go over that.
Choosing and Buying the Right House
This step is arguably the most important. Don’t be scared by the cost of renovation; instead, focus on how much the resale value will be. Buying a terrible house for a low price, but in a great neighborhood is usually a great option when available. It will be much more work (and time), but a greater chance for more profit.
Selling
Once you’ve completed renovations, you’re ready to contact your realtor about selling. Make sure you go with an expert such as D Realty to make the sale. There are many strategies that you will want to use in order to get the highest possible price.
The Takeaway
Consider the risks carefully between taking on the challenge of flipping a house, and make sure you have professional experts in your corner.
D Realty is experienced in this area and happy to assist you with your home flipping adventure or any other real estate needs. Contact us today.