House Flipping Tips to Get the Most of Your Money

Flipping houses is the newest craze these days. If you don’t know what a house flip is, a house flip is buying a property that needs some work, fixing it up, and selling it for profit. But flipping is much harder than HGTV makes it look. If you’re new to house flipping and need some guidelines or even if you’re an experienced flipper that needs some refreshers, here are some tips to ensure that you get that bang for your buck.

  1. Watch your budget: Adding a contingency budget on top of your overall budget is imperative. Once you start opening walls up or changing around plumbing, it’s almost impossible to not run into unforeseen issues, especially if it’s an older home. It’s always better to have extra money set aside for these reasons, and if you don’t use it, you can put it towards your next flip!

  2. Never overpay!: Know the value of the house you’re buying as well as the area you’re buying in. Take into consideration your estimated value after renovations as well. Many flippers want to get to work right away, but knowing your numbers and analyzing them is the first step to a successful flip.

  3. Know the area: Often times, it’s better to find an older, dingier home in a nicer area than the opposite. More often than not, buyers search in a certain area for a house rather than the house itself. Homes in popular areas are already priced higher, so depending on the renovation, you can make more money!

  4. Don’t look on Zillow: Everyone is looking on Zillow or other home-selling websites. If a good deal is found on one of these websites, you will automatically be in a bidding competition with other buyers. It’s better to use wholesalers or do your research on the internet. Remember that a good deal isn’t going to fall right in your lap, you need to search for it. 

  5. Be realistic with your budget and your renovations: But, also know the area as stated before. If you’re buying in a more expensive area, buyers will probably prefer hardwood floors and higher end finishes. It’s important to compare the prices of other homes for sale in the area and go from there. But no matter what, stay in your budget.

This list can go on and on forever, but remember these basic tips and you’ll be on the road to a successful flip! 

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