Tips for Flipping a House

Before you start investing time and money flipping a house, there are a few things you should know. It’s never a good idea to just jump into something, especially something as expensive as flipping a house, do some research before you make the move. Here are some tips for flipping a house and turning it into profit.

Know the Business

Flipping houses is not an easy business, if it was everyone would be doing it. Many people jump into a situation without knowing the business and details behind it. You should keep in mind how much houses in the area are selling for, and what your ROI will be.

Understand the Risks

Flipping a house can be risky, don’t jump into anything without knowing what those risks may be. When you flip a house you will not only be investing money, but a lot of time as well. If you plan on buying a house and putting money into it to later sell, be aware that property owners have been known to have these houses for longer than anticipated. Keep an eye on the value of the homes in the neighborhood to ensure there will still be a profit made at the end of the project.

Obtain a Loan

Take a loan out for several thousand dollars more than the cost of he home you’re planning to flip. This money will be used for extra repairs and improvements, the properties price can always be negotiated so make sure you’re getting the best possible price available. Be sure there is a way or multiple ways to get out of your contract if need be.

Hire the Right People

Hire people with good reputations, you’ll need a general contractor, preferably someone with experience in flipping houses. They should have quality references, and proof of prior projects, knowledge of structural work, as well as remodeling and renovating.

Give Yourself Enough Time

Flipping a house requires a lot of time, be sure that you’re ready for the commitment before jumping in. Make a timeline of what you want to do and when it should be done to help get organized. Sit down with your contractor and go over the timeline, get their opinion, work on setting realistic goals and try to meet them.

Most Important Fixes First

Like most home improvement projects, it’s best to do the more important and more difficult things first. If your plan changed or falls behind schedule, you’ll already have the larger projects done. Major fixes include rewiring the home, re-doing the flooring, renovating major rooms such as bathrooms and kitchens, etc.

What Will You Do Yourself?

If you are going to flip a house, you most likely have some interest in being a part of the process in a more hands on way. Smaller projects like painting and tearing out carpet can easily be done on your own, doing small projects yourself will save you some money rather than paying your contractor to do them. Make sure you are comfortable and knowledgeable in the projects you choose, if you find one is too difficult for you, call your contractor.

Sell the House

Last but certainly not least, selling the home. Be sure you have priced the home with enough room to negotiate as it’s less likely people will initially offer your asking price. It’s important to leave room in your price for negotiations, remember to report your profit to the IRS to avoid any tax issues later on. When buyers are coming by, try setting up a staged living environment, you can rent furniture to help create a lived in home feel, some buyers need to see this to better understand layouts, design space and more.

We hope these tips will come in handy when you start your next house flipping project. Remember when flipping a house you’ll most likely be doing a ton of demolition, creating debris and other waste that you’ll need to dispose of. To keep your project on budget call us at Waste Solutions 123 for an affordable dumpster rental!