Flipping houses is becoming a lot more popular in today’s market. If you are consider going into this field, here are some things to think about.
So what should you look for in a potential house flip?
-Location. Expert house flippers can’t stress this enough. Find a home in a desirable neighbourhood, or in a city where people want to live. In a down market, like the one that exists today, finding a superior location can be a challenge. Start by researching local cities and neighbourhoods. Look for areas with rising real estate sales, employment growth, and other indications that the town will rebound from the recession.
-Sound Condition. You don’t want to tear the house down, and start rebuilding it from scratch. Look for structurally sound homes. You may not have the opportunity to have a home inspected, especially if you buy the home at a real estate auction. You need to learn what to look for, or bring someone knowledgeable about building, electric, and plumbing with you to look at the home, to determine if the home is structurally sound.
-Good Schools. Homes in a good school district sell more quickly.
-The Right Fixes. A home with old carpet and wallpaper featuring pink poodles may be easy, and cheap, to update. Other home repairs to tackle might include installing outdoor motion sensor lights, replacing old kitchen linoleum, and replacing hollow doors with six-panel doors throughout the home. A house that has mold, needs a roof replacement, or needs rewiring, requires some serious time and cash to update and sell. 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. When you estimate the cost of any job, experts advise that you add 20% to the final estimate. Why? It’s always going to cost more than you think it will.