Flipping a house takes a lot more work than what is shown on reality tv. Time and money take a major role and when it’s your time and money you want to make sure you’re spending it wisely. Flipping a house can be a major reward or a major loss and to make sure you take the right steps, let’s go over some essential things to know. If you’re just starting out this can really support you in your endeavors or if you have been doing this for years maybe you’ll add something new next time.
Bigger Doesn’t = Better
The bigger the investment the great the return, right? Well, yes, and no. Bigger also means more work and more potential for mistakes. The longer a project goes on the more money spent on contractors, materials, and mortgage. If you need to repair the walls then you might find more issues to fix behind. Some contractors can’t give you an estimated time depending on how large the property is. The longer you have to wait for the more likely the market can change for the worse.
As you can see there’s a lot to worry about when investing in a large property. For your first time, and going into the future, make sure to start with smaller projects. After that, you can move up to larger projects when you’re more comfortable.
Don’t Over Do It
You might feel the urge to remodel everything and add $50k to the value but that can end badly. You can do all that work on a home and still get a low appraisal rating. I know it might be tempting to open up the kitchen and add bells and whistles everywhere but it’s not always the best decision. Prioritize what needs to be done and do it in that order.
Look for hard results of what trends are adding the most value to homes. The smallest thing can convince someone that this is the home for them. Be aware of what the market wants and see if you can fit it into your budget. Be sure you check what’s popular in the area too because every location has unique needs.
Save Where You Can
If you need to make sure you buy your materials at major stores and have a professional account set up. Choose smaller projects so that you can take a loss if it happens. Find good people to work with that support you. If you consistently work with a contractor they may give you a good deal going forward to make sure you tell them what you’re up to.
Most of all make sure you surrender to perfection. Nothing is going to be perfect, and if you strive for that you may drive yourself up a wall. Accept the mistakes as they come and have fun while flipping. After all, while making a profit is important, so is enjoying what you do.