Unlocking Profit: Three Tips To Successful House Flip
Dreaming of a four-bedroom, 3 1/2 bath haven in a prime location with A-rated schools and convenient local amenities? Picture lovely neighbors with well-maintained properties and envy-inducing gardens. If this sounds familiar, you're not alone. Many aspiring homeowners are a few steps away from their dream residence. Don't be discouraged! With strategic investments, a keen eye for interior decor, and landscape design prowess, you can flip your way up the property ladder to achieve your dream.
House flipping, while not as literal as it may seem, involves purchasing a home in less-than-ideal condition, renovating it, and selling it for a profit. Typically, these are homes that have been foreclosed on or are deemed "handyman's specials." In this article, we'll delve into three crucial aspects of successful house flipping to guide you on your property investment journey.
House flipping, while not as literal as it may seem, involves purchasing a home in less-than-ideal condition, renovating it, and selling it for a profit. Typically, these are homes that have been foreclosed on or are deemed "handyman's specials." In this article, we'll delve into three crucial aspects of successful house flipping to guide you on your property investment journey.
​Unlocking Profit: Three Tips To Successful House Flip
1. Work The Curb Appeal
Curb appeal is one of the biggest factors in selling any property. If the outside of your home isn't worth looking at, you won't be able to persuade anyone to look inside. Fortunately, curb appeal can be relatively cheap and easy to resolve.
Start by washing your windows and touching up any peeling paint around your home's exterior. If your home has a garage, take into account your garage doors. If they are old or damaged, now is the time to replace them. If you have a concrete or asphalt driveway, repair any cracks or holes.
Repair and paint any fencing you have around the perimeter of your property. Mow, weed, edge and trim your lawn so that it's attractive and neat. Plant easy-to-maintain flowers in flower beds (we love wildflowers for their colorful simplicity) and add a few artificial flowers and plants around the property for visual appeal.
As you can see, it doesn't take much but a little elbow grease and some minor repairs and purchases to make your property's exterior attractive to potential buyers.
Start by washing your windows and touching up any peeling paint around your home's exterior. If your home has a garage, take into account your garage doors. If they are old or damaged, now is the time to replace them. If you have a concrete or asphalt driveway, repair any cracks or holes.
Repair and paint any fencing you have around the perimeter of your property. Mow, weed, edge and trim your lawn so that it's attractive and neat. Plant easy-to-maintain flowers in flower beds (we love wildflowers for their colorful simplicity) and add a few artificial flowers and plants around the property for visual appeal.
As you can see, it doesn't take much but a little elbow grease and some minor repairs and purchases to make your property's exterior attractive to potential buyers.
2. Fix Up Any Problem Areas
Almost all properties that are purchased as flips come with problem areas that need to be addressed. Once you've had a home inspector do a walk through to point out any necessary repairs it needs, you'll probably want to put those repairs at the top of the list, as needs are going to trump wants when it comes to renovating a flip. But how much will you spend on repairs and renovations? To get an idea, contact a few different professionals to gather estimates for the work that's needed. You're going to want to get started ASAP, as time is money...meaning, you'll be paying a mortgage on a home you won't be living in while it's not only being renovated, but on the market as well.
If the home is in relatively stable shape and just needs cosmetic repairs, renovate areas of the home that will bring you the biggest ROI: the kitchen and bathroom and, if you can swing it, a converted basement.
If the home is in relatively stable shape and just needs cosmetic repairs, renovate areas of the home that will bring you the biggest ROI: the kitchen and bathroom and, if you can swing it, a converted basement.
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3. Make The Property Feel Homey And Lived In
Regardless of whether or not you'll be living in the flip, renting it out until it sells or just staging the property for resale, you're going to want it looking cozy and lived in so potential buyers can imagine living in the home themselves.
Make sure your fixtures and finishes are neutral in color and design (you can never go wrong with a creamy white satin paint color). Choose affordable kitchen countertops like Corian (about $35-65 / sq. ft.) and laminate flooring throughout the main living space. If you have to replace windows, don't skimp; you can still purchase energy efficient windows and doors without having to sacrifice quality.
Try to show the home as lived in and comfortable, with simple furnishings. If you do have a temporary tenant staying in the home until it sells, ask them to keep photographs, collectibles and other personal effects to a minimum.
Make sure your fixtures and finishes are neutral in color and design (you can never go wrong with a creamy white satin paint color). Choose affordable kitchen countertops like Corian (about $35-65 / sq. ft.) and laminate flooring throughout the main living space. If you have to replace windows, don't skimp; you can still purchase energy efficient windows and doors without having to sacrifice quality.
Try to show the home as lived in and comfortable, with simple furnishings. If you do have a temporary tenant staying in the home until it sells, ask them to keep photographs, collectibles and other personal effects to a minimum.
This infographic gives even more tips on how to successfully flip a house. We completely agree with #4!
Infographic courtesy of Central Bank
House flipping to work up the property ladder takes time and effort, but if you are willing to put in the work, you will reap the rewards. Keep your expectations small to start with, and only take on properties you know you can afford to improve.
Have you ever flipped a property? How did it work out for you? Would you do it again? Let us know in the comments below.
Have you ever flipped a property? How did it work out for you? Would you do it again? Let us know in the comments below.
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