How to Fix and Flip a House
When looking for real estate investment opportunities, many people look into fixing, flipping, and selling old homes. This venture can be incredibly profitable, and it has grown in popularity due to the rise in home renovation television programs. Getting started with such a project presents a few challenges. There is a lot to research and plan before diving in. If you are interested in flipping a home to sell, consider this guide to get you started.
Set Your Budget
Investing in a fix and flip can be a large financial undertaking. It requires a lot of planning at the forefront. Once you have chosen a neighborhood in which you would like to buy, investigate the average price for a home in that area. Use that information to begin organizing your budget. Know how much cash you have readily available and start researching financing options to cover the rest of the costs. Factor in expenses for the equipment and materials you will need for renovations.
Conduct a Property Inspection
Before you can start renovating your property, you should hire an inspector to identify any potential structural issues that may need repairs. Since you are planning to fix and flip the house, you are obligated to ensure it is safe enough for its future owners. Make sure you are home when the inspector comes so you can check the house together. Ask all the questions you need to get the right information. Keep a notebook on hand and write down anything that will need immediate attention.
Find a Contractor
You will need lots of help from qualified experts to manage the renovations on your new investment property. Ask family members and friends for recommendations and reviews of local contractors and firms. Prepare a detailed list describing the work needed and present it to each contractor. Feel free to interview several firms before making a final decision. After all, the people you hire will be spending a lot of time with you on your property. You want to feel secure in your decision.
Hire a Realtor
When it comes time to sell your house, you will have to decide between selling by yourself or enlisting the help of a professional. Some people are confident enough to handle the sale independently, but many will hire a realtor to manage it. Research realtors in your area and use customer reviews to help you choose the best one for you. A realtor can help you set a price for the house and can help organize and run showings for potential buyers.
As you begin your property investment journey, use these tips to help guide you along the way!