For many people, home flipping is their first experience in residential real estate investment. The job of a home flipper sounds easy: buy a home at a low cost, fix it up to increase its value and then sell the home for a higher cost. Home flipping is a popular activity because it's relatively affordable and many people enjoy the process. If you're new to home flipping, the following seven tips can help.
1. Do Your Research
Before a home flipper purchases a property, they should know the standard value of the homes in the area where they're thinking about buying. This tells them how much they can expect the home will be worth when the property has been properly repaired.
2. Align Yourself with Professional Contractors
Many people who flip homes do a lot of the repair work themselves. However, not all work should be done by an untrained, unqualified homeowner. For example, foundation repair requires special tools and training. Investors who purchase a home with foundation problems will need help from a qualified contractor. Knowing the qualified contractors in the area can help home flippers get the services they need when the time comes.
3. Get Comfortable with DIY Projects
A person who is not comfortable doing their own repair work is not well-suited to flip homes. Hiring contractors for every repair can get expensive, which makes it harder to make a profit. Anyone who wants to flip homes should be capable of performing basic tasks like repairing a toilet, installing a new toilet, painting the walls, installing a faucet, replacing a light fixture and so on.
4. Gauge Costs and Prices Accurately
Whether a flipped home will turn a profit depends entirely upon the cost of the home when it's bought, the cost of fixing the home, and how much the home can sell for when it's complete. To know this, the home flipper must first determine the cost of fixing the house.
5. Add Little Touches
Flipped houses are more likely to attract buyers when the investor has added small touches like cute drawer handles, interesting faucets and nice light fixtures. These details don't cost a lot and add value to the home.
6. Start Small
The first home a person flips should be small and affordable, without too many major structural defects. The more investment the home requires, the easier it is for the home flipper to lose money. Modest beginnings and modest profits make for a successful start to any kind of real estate investment. As the investor becomes more experienced, they can take on bigger projects with more risk.
7. Fix Up the Yard
It's not enough to make the home's inside look good; the outside needs to be attractive as well. Fixing up the yard may involve things like removing weeds, trimming back or pruning overgrown bushes, installing new landscaping, planting a tree and adding mulch to empty spaces between flowers. Fixing up the yard improves the home's overall curb appeal and makes a good impression on the person who eventually decides to buy the home.
Work with a Real Estate Professional
Whether you're new to South Calgary real estate investment, or a seasoned home flipper, it's important to work with a real estate professional. Your real estate agent can help you identify good homes for investment while helping you negotiate the best price for the home you want to buy.
For more information about home flipping, contact a real estate agent today. Your real estate agent can help you decide which properties make the most worthwhile investment.