Buying and flipping a house for profit is a common method of investment in real estate. House flippers typically buy a home for a much lower cost than invest time and money into the home with upgrades and furnishings to make it more coveted among buyers. When they sell it, they’ll do so at a much higher rate to make back multiple the amount they put in when initially purchasing. House flipping, however, is not an easy task. It requires business acumen and a strong sense of finance and market. Below are nine critical areas to check out when house flipping. Here are some house flipping tips.
There is no such thing as not enough research. Researching your market and understanding what kinds of homes are being sold and purchased in your region is absolutely essential. Part of your research should be a daily ritual of reading the paper. You should read the real estate section but also have a broader understanding of what the economy is like overall at the moment. In addition to this, keep track of your local listings particularly the ones that are in foreclosure. Use Zillow, RealtyTrac, and Auction for these listings, and consult with local agents and brokers as well. Look at the classified section as well as sites with homes for sale by the owner such as Fizber and FSBO. You can also get a good sense of what homes are up for sale by simply driving around the area you are interested in.
Areas to Check When House Flipping: Know Your House’s History
Understanding the foundation of the house you’re about to flip requires some deep knowledge about its overall history. Not only does it help when it comes to making decisions during construction, but it also helps when selling the house. Many buyers want to know the history of the home they are about to buy. Furthermore, when flipping houses, you’d want to do it with the utmost necessary respect if it is on a particular property that has a long history. If there are parts to the house that should be preserved because of historical significance, keep an eye out so that it doesn’t get destroyed, removed, or replaced. Such parts might add value to the home.
Flipping a house doesn’t only require attention to the house itself. The landscaping of the home also requires attention. If a home has a picturesque yard with well-kept grass, shrubs, and trees, the market value goes up. Pay attention to these aspects when flipping a house. It may result in additional costs but in the end the return will be better.
Areas to Check When House Flipping: The HVAC System
When you purchase a home to flip, be sure to test and see if the HVAC system works. Simply flip the switch to see if the heating and air conditioners work. HVAC repairs can be quite costly so be sure to invest in a house that has this ready to go without costing you additionally. If a home does not have central air conditioning, it is a good choice to invest in this to make the home more desirable to buyers.
When you flip a house, you can make upgrades to the bathroom to make it look more modern. A nice bathroom can make or break a sale because a majority of people love a nice bathroom. You can modernize a bathroom’s look by taking out the tub and turning it into a walk-in shower. A way to make the bathroom seem more spacious is to add a glass wall. Instead of an entire towel rack, you can add individual towel hooks to free up wall space. Little details can make a bathroom seem entirely different from an ordinary one.
Areas to Check When House Flipping: The Plumbing
It is very important to check the plumbing of a house. The first thing you should do is check and see if every faucet turns and water runs. Check the main sewer line and make sure it is free of clogs. Check the water heaters to make sure there is warm water in the house. If there are leaks or repairs that need to be made, be sure to add these to your costs. Also make sure to check and see if all the toilets flush because this is a very important detail.
Inspect Your Roof
What’s just as important to the foundation of a home is the roof. Some house flipping tips include keeping an eye out for multiple layers of roofing that would not qualify for a warranty. Be sure to check and see if the house you’re about to flip is under 15 years of age. Any older than 15 years will require roof inspection. Look for signs of fading or discoloration. Curled shingles are also something to replace. If you’re going to invest in a new roof, note that stone-coated roofing often looks better than traditional roofing, and so it may be a nice upgrade to include for the house.
Areas to Check When House Flipping: Location
This seems like a no-brainer, but a lot of people struggle with this. They flip a house into a more beautiful living space and then find no one to sell it to. If a neighborhood is undesirable to buyers, then it is unlikely that your house will sell. It will also not really match with the location it is in. Be sure to pick the right location to flip your house in to secure its future. Research the city it is in or nearby and determine if it offers a lifestyle that would be appealing to buyers.
Market to Sellers
Once you flip the house, you should focus on selling. When selling, you should market it towards sellers. This is because sellers know how to sell a house better than a house flipper does. If your role is just to flip and execute an entirely new vision of a home, then focus on that. Let the seller do their job as sellers. They are trained to sell a home to eager buyers better than anyone else. They can help you properly stage the home in a way that’ll appear to potential buyers.
When buying a house, be sure to keep an eye out for a low-cost and shabby home that has a lot of potential to be flipped. If it is a terrible house in an excellent location, this is the kind of house that has promise and should be flipped easier than others. Be sure to keep sellers in mind when you’re buying this kind of house. Make sure you give sellers something to sell when their clients come to view the home. Check for details such as plumbing, roofing, HVAC and other areas because they will cost you if you don’t. We hope these house flipping tips are helpful.
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
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