Whether you’re new to the concept of house flipping or it’s something that you’ve wanted to do for years, the idea of actually flipping a property can be extremely daunting, as there’s just so much to think about and consider. However, if you have the funds to buy a house to work on, do up and sell on for a profit, and you have the time to do so, then flipping a property can be a great way to give your savings a boost. It’s a big job but the potential rewards can be huge.
If you’re new to property flipping there’s a lot to think about, isn’t there? It’s important to remember that property flipping requires a lot of time, effort, money, and hard work, and each property tends to be a long-term project. So it’s important to be aware that your investment might be tied up for a while, so you need to be okay with not having those funds back until the house is completed and sold.
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Still keen to flip your first property? Here are a few key factors to take note of and implement when flipping houses – read on for everything that you need to know!
Find the right house
The first step of flipping a house is actually finding the house. What you want to look for when it comes to a property to flip is finding a house that is a fixer upper property – aka it needs a little time and love. The cheaper the property the higher the profit when it’s sold. However, that being said; what you don’t want to do is pick a property that’s so run down that it’s going to cost far too much to fix up. It’s a fine balance; you need to find a cheap property that has fantastic potential but isn’t too much of a mess to actually be able to make a good profit from.
If you aren’t sure where to start, you could always speak to a real estate specialist and ask them to provide you with some suggestions for local properties that could be a good fit for your requirements. As an incentive for them to help you, you could make a deal with them that once the property is ready to be resold, you will go through them and no other realtor.
Be mindful of the area
When it comes to selecting a property to do up and sell on, it’s easy to get distracted when you find a property that appears perfect and fail to think about any other important factors. However, you don’t want to make this mistake – as by doing so you may end up buying a property in a bad area. It’s not just about the property itself, it’s also about the area in which you find it. If you are going to ensure that you are able to make a good profit off of the property, then it’s important that you source a house in a nice area.
What you want to look for in regards to the area is a nice, family-friendly location, somewhere that’s close to local amenities such as stores, schools, and transport facilities. You also want to look for somewhere that has a lot to offer in terms of work opportunities. You need to think about what you would want from a new home for you and your family, and use that to help you pick the right area and the right property within that area to do up.
Look for flaws
When buying a property, it’s essential that you take the time to determine what exactly its flaws are. There are some issues that are easy to deal with and manage and won’t be that expensive to sort out, however there are also other issues that can be extremely costly and a total nightmare to deal with, so it’s worth taking the time to really take into account any issues with a property before choosing to purchase it.
One of the main issues with properties is damp; damp can be exceedingly difficult to treat, depending of course on the type of damp. That’s why it’s a good idea to get a damp survey done on any properties that you are thinking of buying, so that you can have a clear idea of whether there is a damp issue, and if so, how severe the issue is. This will allow you to determine how much it will cost to deal with the issue or whether it would make buying the property too expensive as a property to flip.
Create an action plan
Once you have found a property to buy, then the next step is to create an action plan. What you need to do is sit down and work out how long doing up the property should take and what steps need to be completed and in what order. This is important, because you can’t schedule the work to be completed until you know what needs to be done in what order. To determine this, you might want to sit down and discuss your plans with a contractor to work out the best way to move forward with the project.
It’s also important to take the time to get inspired in terms of the design and layout of the property. What you want to do is find inspiration in regards to how you can make the finished property absolutely exceptional. Because, if you want to ensure that you make your money back plus extra, you need to create a space that is incredible. A great place to source inspiration from is Pinterest – there are always lots of incredible ideas available on there, so it’s worth taking a look.
When done right, flipping properties can offer a fantastic income potential, it’s just a case of making sure that you know what you’re doing, before you invest your money and take on the project to do up and sell on a property.