If you’ve got money saved and have some remodeling skills, flipping houses might be a great way to build your wealth. Before you buy that first house, however, here are some things to remember when flipping houses.
Find the Right Area
Stefan Soloviev asserts that the right area is the key to successful real estate purchases. Most people renting homes are families with children, so look for a neighborhood that has good schools. Check the crime in that area to make sure it’s a safe, desirable place where people want to live. If you don’t mind living there, it’s a good bet prospective tenants would be happy to relocate there as well.
Add to Your Budget
While you can save money by doing much of the work yourself, unexpected events come up in every home remodeling. Prices rise or you’ll need more material than you originally thought, so add a little extra to your budget to cover surprise costs.
Look for an Ugly House
Look for a house that’s structurally sound with a good foundation, but needs cosmetic work. Ugly residences with sound roofs and solid foundations come at a lower price and bring more money once you address those issues and sell that home.
Find Good Contractors
You won’t be able to do all the work yourself, so find good contractors you can work with. If you find a contractor you mesh with, consider becoming partners and going into the house flipping business together. You’ll share the profit, but you’ll also share the risks and costs of purchases and repairs.
Watch the Curb Appeal
The way your house looks from the outside has a tremendous impact on how easily you can sell that property when it’s time to put it on the market. Make sure the house is attractive from the outside as well as the inside. Pay careful attention to the landscape. Ask your workers to stay off the lawn and not dump equipment there so it doesn’t become brown and ugly. Add flower boxes under the windows and some planters on the front porch to make your home more attractive.
Also, make sure you get the project done in a timely manner. A home that remains unfinished for a long period of time is not going to sell well, so be diligent about finishing tasks. That way, you’ll be able to sell the property quickly and enjoy the profit.