After watching TV program after TV program on HGTV, our confidence level in flipping a house has sky rocketed. Sure, it looks like fun and a nice way to make some extra money, but how easy is it really?
We’ve sat down with an experienced home flipper for a couple of tips on flipping houses.
1. Look for a fixer-upper
Not every house you flip has to be a fixer-upper but it can be a good investment because they’re usually cheaper due to the fact that they need a couple repairs and updates. Once those repairs are made and you add a couple updates the house is ready to go and usually sells for a higher price than what you bought it for. When looking at buying a fixer-upper make sure it has potential, for example, how big are the rooms, does the layout work well, how’s the neighborhood, and what does the yard look like?
2. Consider foreclosed properties
This may be a little tricky, especially if it’s your first time flipping a house but with a foreclosed property you can get a great deal on a great house with a ton of potential. Before buying the house make sure you do as much research as possible on the house because whatever the house has, it’s coming with it. You could get stuck with back taxes or unpaid mortgage payments.
3. Treat the home as if you were going to live in it
You have to take care of everything, just as you would with your own home. Just because you will be fixing it up and renting or selling it doesn’t mean you get to forget about that little leak in the basement or the mortgage payment.
3. Don’t ignore big problems for a lower priced house
Some repairs can cost you a fortune so make sure you take a step back and think about how much each repair may cost and if it will truly be worth it. If you are unaware of how much each repair may cost, ask your contractor to come along with you while considering a house, he will let you know which repair will most likely break your bank.
5. Don’t forget about Curb Appeal and Landscaping
This is pretty self explanatory, but don’t forget about the outside of the house. Of course, the inside is the most important to focus on but don’t spend your budget and leave the outside looking crummy.
Flipping a home can get pretty expensive so before diving in make sure you have the money to do all of the repairs and decorating. Also, try not to get too excited, flipping a house can be very fun but don’t overdo the decorating or purchase the most high-end appliances. If you do so, in the end you may have an incredibly nice kitchen but end up with not enough money in the budget to fix up the living room.
7. Don’t let yourself get too overwhelmed
Easier said than done, right? If you plan correctly and take your time you should be a-okay. Flipping a house can be very stressful so just take a deep breath and be prepared. Don’t get me wrong though, it may be stressful but it is also very rewarding once you’re gazing your eyes upon a nice new house that you created.
If you’re thinking of flipping a house in the Twin Cities and want to learn more or have any questions about where to start, what to do, or just need recommendations, give The Monson & Larson real estate group a call and they can help you with any questions you may have. The Monson & Larson real estate group has been helping families in the Twin Cities for over 20 years; give us a call at 763-694-1048 today!