In 2020, 5.9% of all homes sold were flipped houses, an increase from the previous year. With house flipping becoming more common, you might be looking to get in on the action as well.
So, what happens when you flip a house? It’s not as simple as it sounds!
Read on to find out who flips houses and what the process is.
What Is a House Flipper?
House flippers buy homes that most homebuyers will dare not touch. The property could have a range of serious issues, such as foundation cracks and leaking roofs.
The flippers are usually individual investors or investment companies like BrothersBuyHomes. They buy the home, fix the problems, and then sell it. The goal is to make the house move-in-ready for the new homeowners. It takes labor and money to flip houses.
Research the Housing Market
The biggest mistake you can make is to buy a home to flip where you won’t get a good return on investment. If you are starting, choose a home at a lower cost. This will give you more money to work with for the renovations.
You also want to be sure that where you are flipping houses is a good fit. Some areas are better suited for this type of real estate investment. Work with a realtor to understand the neighborhoods in your area.
Set Your Budget
When setting your budget, factor in the cost of the property and the repairs. To buy a house at the right price you need to find the after-repair value. It will calculate the price you should pay for the home while factoring in the repairs.
When starting, pick a house that only needs cosmetic repairs. You can make a difference in a home by painting and fixing up the bathrooms and kitchen. If you have a small budget, you do not want to deal with structural or utility repairs.
Assess Your Skills
Now is the time to figure out what amount of work you can do yourself. You may be knowledgeable about real estate but have no construction experience. Build a team that will help you flip your house.
Find contractors you can trust and get quotes for the projects you want to do. Having a network of contractors, roofing companies in Northern Kentucky and handymen will make flipping houses easier. Don’t try to work outside of your skillset and use your resources.
Find the Right House to Flip
Use a real estate agent to help you find a home at a good price. You do not want to rush the home-buying process. Take your time to find the perfect house to flip.
Look for homes that are in foreclosure or are clear fixer-uppers. You will be able to get these homes at a lower cost.
Do the Work
Now that you have your house, it’s time to get the repairs done. To save the most money, you can do the repairs yourself.
Not paying professionals will allow you to get a better investment return. If a project is above your skill level, use your trusted contractors. You’ll know the job gets done right and on time this way.
Flip the House
Now it’s time to re-sell the house! You want to get this step done as fast as possible. The longer your home sits on the market, the more money you will pay for it.
Work with your real estate agent to market the house and sell quickly. They will help you set the right price for the area as well.
Do You Think You Are Ready to Flip a House?
If you think you can tackle all these steps, you are ready to flip a house! Make a plan and get started today. House flipping can be fun and rewarding when done right.
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