Have you ever thought, “I really love this house, but it needs a lot of work.”? Most of us, at some time in our lives, have walked through a house in a neighborhood we’d love to live in, but the house just doesn’t suit our needs or we walk through and just see the potential. Whatever your situation is, it may be a case where if you flipped the house you could be looking at a serious profit.
How to get started in the house flipping business:
- Look at neighborhood comps
- Consider your budget
- Get the pros involved
- What can you get out of the home when it’s time to sell?
Look at neighborhood comps
When buying a home that needs a little TLC, it is important to look at what other homes in the neighborhood are selling for. You don’t want to get into a situation where once the renovations are complete and you go to sell that you are listing for way higher than other homes in the neighborhood. A high price will make your home hard to sell and it may not appraise for that amount in the end.
Consider your budget
When looking for a house to flip consider your budget. How much money are you willing to fork over upfront. When you flip a house you are spending a lot of money upfront while waiting to recoup your costs at the sale. Make sure that you stay within your budget because during your renovation process things could pop up potentially that you weren’t planning on.
Get the pros involved
Before you purchase or begin renovating your flip house, consider hiring a great home inspector. Doing so will help you see some potential problem areas so you, hopefully, don’t run into any surprises along the way
What can you get out of the home when it’s time to sell?
Once you know your budget for renovations, house costs, etc. you will know what you must get out of your house to break even, but what about if you want to make a profit? How much will you need to sell your home for? How much is it worth? These are great questions for a real estate agent. Getting in contact with a local real estate agent will help you get the most out of your home.
If you have questions about home buying or selling, be sure to contact one of our expert agents today.