4 Tips for Profitably Flipping a House
Wednesday, June 13, 2018
The concept of flipping a house is a major trend in the world of real estate investing. Flipping a house gives an investor a chance to buy a home at a lower price and give it an upgrade. After the upgrade is complete, they can resell it at a higher price.
About 3% of Americans say they are real estate investors and want to buy property within the next year. Even though it seems like a good idea, there are a few rules to live by when it comes to flipping property. Here’s what you need to know.
Find a Home with a Good Location
Any investor or residential property management group should know that location is everything. People are going to want to live in a nice area that has the promise of growth. Look for a home that sits by a good school district, nice restaurants, shopping centers, and parks. A home near amenities such as these is more likely to get more attention than one that’s in a deserted area.
Find a Home That’s Different, But Not TOO Different
Finding a unique home to offer to potential buyers may seem like a good idea, but if it’s too different from every other house, it can scare them off. A unique home is a good idea in theory, but it won’t sell if it offers challenges to a buyer’s daily routine. Oddly enough, standard, cookie-cutter homes are often in higher demand and can sell quickly.
Find a Home That Was Built In 1978 or Later
A lot of homeowners love the charm of older homes. But there are actually many problems that come along with homes built before 1978. Those homes may contain lead-based paint, will require a lot of renovations, and will have to be upgraded to comply with certain laws. If you don’t follow these regulations, you may face fines up to $30,000 or more. Newer homes are easier to sell or rent out, as they have updated features and appearances.
Find a Home with a Good Floor Plan
A good floor plan is key to any home. Otherwise, the potential homeowner is going to have trouble getting around. Look for a home that has an open floor plan so people can move from room to room with ease. If the floor plan includes large closets, a foyer, and a laundry area, that’s a plus.
If you're an investor or part of a residential property management group, flipping houses may help you get more clients. People are constantly looking for houses for rent and property for rent and would love to spend a little extra money on a home that had recently been flipped. Speak with your residential property management team or investment group and start searching for the perfect location.
If you have any questions about property management services, please give us a call at 407-261-5610