Flipping houses has become a very popular way of earning money in the past few years, thanks in part to TV shows like Flip or Flop and Masters of Flip. However, making a profit in this way is not always as easy as those shows make it seem. It is, of course, possible to make a profit, but in order to do that, you need to know what you’re doing, especially if you want to maximize your profits.
If you’re thinking of getting into the property flipping business, here are a few things you will need to know if you want to make as much money from the process as possible:
Buy homes that are basically sound
The biggest tip we could possibly give you for flipping homes is to make sure that you buy properties that are basically structurally sound. Properties that have a lot of problems are going to cost you a lot of money to put right. Things like old and unsuitable electrical systems, subsidence, and damaged rooves will need to be fixed before you can sell, but doing so could wipe out any profit you make. Choose a property that’s in fairly good condition and you can do a little cosmetic construction to make a decent amount of money.
Buy in an up-and-coming area
If you buy in an area that isn’t the most desirable, but which is getting more and more popular as time goes on, you should be able to buy low and sell high as demand for the properties in that area increases. Any property manager will tell you that if an area has decent schools, access to green space, and is having a lot of investment in local amenities, it’s a really good sign that it will only grow in popularity, but it’s worth doing some research on house prices and sales before you make the final decision to buy.
Remodel the kitchen
The kitchen is known as the heart of the home, which is why most people head straight to that particular room when they’re viewing a property. If the kitchen isn’t up-to-date and in excellent condition, it will almost certainly put buyers off. As a minimum, you should have a contractor come in and ensure that the floors, cabinets, and islands are up-to-date and of a decent quality. Then, you can probably get away with dressing the room nicely to make a sale.
Remodel the bathroom too
After the kitchen, the bathroom is one of those rooms that buyers are really concerned about, So, if the bathroom in the property you’re flipping isn’t up to scratch, you may want to get in touch with your construction company and have them re-tile it, replace old baths, sinks and toilets, and generally pretty it up.
Keep it neutral
When it comes to decorating your property for flipping, it’s best to keep it neutral with shades of white cream and gray. That way, your potential buyers can more easily envision putting their own stamp on the place.
Flipping houses can be tough, but if you take your time and focus on what buyers look for in a new home, there’s every chance you will succeed.