With so many HGTV programs showcasing home renovations, it's not difficult to see why many investors are opting to flip homes of their own. If you're interested in taking on this project, you'll want to make sure you are getting the biggest return on your investment. Before taking the plunge, read our guide for a few tips and tricks for home flipping. After all, flipping homes can be extremely rewarding, so you'll want to be as prepared as possible.
Find The Right Home
When searching for a Greenville or Simpsonville home, don't settle for something that isn't ideally located, in decent condition and within your budget. Searching for the perfect home can be tiresome, but it's important that you buy the right house. You'll want to look at your financial game-plan, time frame, resale value and all associated costs. Additionally, consider a property that is near your own home. You'll likely be visiting the property frequently to either complete the work yourself or check in on the work being done.
Know Your Home Buying and Renovations Budget
Your profit will largely depend on what you initially pay for the home, so try and find a decent deal. The home should definitely be below local market value. Buy an outdated home in a desired neighborhood. The value will only go up due to the value of the other homes in the community.
Don't overextend your financials because you might run into unexpected issues throughout the flipping process. And when planning out the home's renovations, stick to a hard budget. Remember, you may want to renovate everything, but the home must be profitable. Try to find fixes that will earn you the most bang for your buck.
It's All In The Kitchen
Many home flipping experts believe that remodeling the kitchen will give you the biggest return on your investment. It can also be one of the more expensive rooms to renovate. Research how much you'll have to spend to make it entrancing to buyers.
When the renovations are being completed – if you're not doing them yourself– you'll want to check in frequently. Keep an eye on time, the budget and repairs to ensure they're proceeding properly and to your liking. Or if you prefer, you can hire a professional contractor to supervise the flip, particularly if the work is extensive.
Time Is Money
The longer a home is under renovation and the longer it sits on the market, the less profit you'll be making. You are responsible for all costs associated with the property such as taxes, insurance payments, utilities, mortgage payments, etc. The less amount of time you hold onto the home, the higher your profits will be. Be sure to budget for at least six or seven months of all payments.
Sell, Sell, Sell
Once the renovations are done, it's time to sell and make your profit! Use a real estate agent because they're more likely to sell the home quickly and efficiently. They also know the market better than anyone and have the skills and network to sell your property for top dollar.
Flipping a home can seem risky, but with the right preparations and discipline, it can also be extremely rewarding. If you like a challenge and you have a passion for renovating homes, then house flipping could be a valuable investment for you.
Do you have any home flipping tips not mentioned here? Let us know! Comment below and share your tricks!
Contact RE/MAX Moves today to browse Greenville and Simpsonville real estate or simply call us at 864-757-4787.
RE/MAX Moves 100 Batesville Road, Suite C Simpsonville, SC 29681 Office: (864) 757-4787