Flipping houses has become a popular way for families and businessmen to earn extra income. Wikipedia provides a perfect definition of flipping, which is basically residential redevelopment where you buy low and sell high for profit. With the right tools, this method of investing can be quite easy. Basically… you buy the cheapest house in the best neighborhood, fix it up, sell your house quickly and make money.
The First Step in Flipping Houses
The first step of flipping is to locate the perfect property. It is best to form a relationship with a good real estate agent that will keep an eye out for you. It is worthwhile to have a good real estate agent because they will already know the best areas and neighborhoods to invest. This will take away some of the research work from you. It is a good idea to invest in areas you are familiar with as well so you are not going in blindly.
Fixing Up a Flip Home
Once you find the right house, you will need to figure out how all of the remodeling work will be completed. You will either need to acquire the perfect contractor, or better yet do it yourself. If you are using a general contractor you will need to be sure they are trustworthy, reliable, good communicators, reasonably priced and talented. If you are handy and can do it yourself than your profits will be greater since you don’t have to use money to pay someone to do the work.
Pick the Right Items to Fix
When doing the renovation, you have to be smart in choosing what areas of the house will yield the greatest return on your investment. You also need to make the turnaround as quick as possible. Time is money. So, in order to sell your house quickly, it is crucial to make improvements to a few central parts of the property.
Kitchens are the biggest selling points of a home. The kitchen is where people spend the most time at home. Therefore it is worthwhile, it is where you will get the most bang for your buck. Home buyers will appreciate the new cabinets, granite countertops, upgraded backsplash, light fixtures and appliances. You can’t go wrong here.
Bathrooms are another area of the home that buyers are looking for upgrades. Next to the kitchen, it is an area of the home that is used often. An outdated bath is an eyesore to a buyer. Updated paint, trim, vanities and showers make a world of a difference.
It is also important for the outside of the home to be manicured. Spending money on new landscaping and outdoor fixtures is crucial. Curb appeal is the first thing people see and can be the first impression that a buyer can’t look past.
Selling the Home
Once the home is sold, all of the hard work will be worth it. Selling your house quickly should be a priority as the longr you are in it the more overhead you will have.