House flipping is getting quite the reputation thanks to popular shows on a variety of cable networks. It occurs when real estate investors – or even first timers – buy a home (sometimes at auction, sometimes through foreclosure, etc.) and then resell it for a profit after some rehab/renovation. While this type of venture isn’t for everyone, buying a distressed property to renovate and resell can be very appealing and profitable option for investors. If you’re considering flipping a property for income, make sure to check the tips below to help along the way.
While this type of venture isn’t for everyone, buying a distressed property to renovate and resell can be very appealing and profitable option for investors. If you’re considering flipping a property for income, make sure to check the tips below to help along the way.
What to look for:
- Expert house flippers can’t stress this enough. Find a home in a desirable neighborhood, or in a city where people want to live.
- Sound Condition. You don’t want to tear the house down and start rebuilding it from scratch. Ugly can be fixed, but significant structural problems can eat away at your budget.
- Good Schools. Homes in a good school district sell faster.
- The Right Fixes. A home with old carpet and dated wallpaper can be easy and cheap to update. Other projects that are easily addressed include installing new flooring or replacing hollow doors. A house that has extensive mold damage or needs a roof replacement, on the other hand, may not be so affordable. Make sure you know which updates and repairs you can afford to fix, which repairs you can’t afford, and which home improvements will increase the selling price of the house.
- Close to You. You will work on this house daily in the weeks and months to come. Do you really want to work all day, and then drive an hour to get home? Don’t invest in a house too far away from where you live – it’s a waste of precious time and resources.
- Analyze the Kitchen. The kitchen is the most important room in the house, so pay close attention to this area. Most experts recommend you focus on remodeling the kitchen and then look into bathroom redesign ideas. Figure out how much you will have to spend in the kitchen in order to make it appealing to future buyers.
- Make sure the price of the home is below its value in the local market.
Interested in taking a look at foreclosure properties in the Denver area? That’s what we specialize in! Give Metrowest a shout – we’re happy to show you around.