House flipping can be a very lucrative way to make a living. The housing market is steadily improving, and as more people venture out to buy homes again instead of renting, the chance to quickly turn over a house improves. However, before you begin on this type of venture, it is important that you understand five very basic things about house flipping. Here’s a quick 101 on house flipping before you get started.
1. House Flipping Takes Work
You will need to work with a good real estate agent in your area. A real estate agent can help you locate low priced homes and help move yours when it is ready to sell. Trying to accomplish all of this on your own can be time and profit consuming. Pair up early with a real estate agent that is familiar with the area so that you can tap into their knowledge on the homes you might be looking at.
2. Discount Homes Need Repairs
It would be very rare to come across a discounted property that was not in need of repair. Make sure that you are prepared to invest some time and money into the home you buy to flip to generate the largest profit. It might also be good to start lining up some contractors in advance, to ensure that you have a good feel for the costs before you buy.
Or, if you are capable of making repairs on your own, even better! But, it is important to not like your personal taste and style take over; again this is something you can consult with your real estate agent about. They will have a feel for what buyers in the area are looking for. To be on the safest side, you want to upgrade the home in a generic way that will look appealing to all people. Being able to make these upgrades yourself can save you mass amounts of money on labor.
3. Kitchens Are Crucial
The first thing that a potential buyer looks at in a home is the kitchen – your real estate agent will most certainly agree. If the kitchen looks like it is outdated or in need of repair you will have a hard time selling. People are willing to change other areas of a home they purchase, but very few want to buy a home that needs a kitchen remodel as it can be very expensive and time consuming. Cabinets make all the difference as well. Knotty alder kitchen cabinets are popular and a consideration if you need to upgrade cabinets. However, if the house would not benefit from this type of cabinet design, there are many other wholesale kitchen cabinets that you can choose from. If you have an eye for design, this is something you can choose on your own. Or, even ask your real estate agent for help as a number of agents are also trained in interior design. Counter tops should also blend, so don’t forget about those in the process.
4. Garage Doors Have Visual Impact
In a recent survey of potential buyers it was discovered that many people judge a home by the condition of the garage door. When they pull up in the driveway of a home they are considering to purchase, it is the first thing they see. If the garage door looks beat up, old or just poorly taken care of, a homebuyers first impression may be that the whole house may need to be upgraded and repaired.
5. Minimalist Landscaping Is Best
Even if you are a master landscaper, you want to keep the landscaping very minimal on the home. People do not want to think that thy will have to spend their entire day off maintaining the yard; as it might just be something that others won’t appreciate or even find to be a pain. Keeping landscaping clean and simple can help to sell a home faster.
Flipping real estate is a great side business or main business opportunity as long as you know what you are doing and getting yourself into. These 5 things every real estate investor needs to know before buying an investment property should prove to be helpful.
Article and insights provided by Brionna Kennedy.