Do you love fixing up and updating homes? Do you have a knack for decorating, paint colors, and flooring? If so, flipping houses may be the perfect career for you. This can give you a high profit while doing something you love. Here are some quick tips on starting out in the house-flipping business.
Make Sure You Have Enough Cash
One of the most important things you must do is ensure you have enough money for the flip. Whether you’re drawing from savings or getting a loan, it needs to be enough to cover all the costs of repairing the house. You’ll also need a down payment, generally about 25% of the asking price. Ensure you have enough money before purchasing a fix and flip home.
Skip Real Estate Listings
Most online real estate listings are for people looking for a move-in-ready home. You should look elsewhere and look for homes that were foreclosed on, in an auction, or offered for wholesale. This is where most homes that are waiting to be fixed and flipped will be listed.
Get a Professional Inspection
Houses can have many issues, some of which are not detectable to an untrained eye. Hire a professional to inspect the home and inform you about current or potential upcoming problems. This will prevent you from being caught off guard when something needs to be replaced sooner than you anticipated or when you were unaware of a more significant issue. A professional inspection can help you determine whether it’s the right home for you to work on.
Check Out the Neighborhood
Look around the neighborhood to determine what kind of family the house would be suitable for. For example, if the home is near a school and park, then you should aim to transform it into a home for a family with children. If you’re near a dog park, consider adding a doggy door to the back door. On the other hand, if there are many corporate offices nearby, it may be better suited for a business person.
These are a few steps that can help you find the right house for you to flip. Make sure you have cash on hand, get the home professionally inspected, and inspect the neighborhood. Do your research and be thorough to ensure that you find the right house for you and a house you can afford and that you are flipping it for the right kind of person or family.