The past years have seen house flipping gain attention an exciting way to earn money. It looks simple enough: buy a house, renovate, sell. Remember, though, that people with house flipping shows have likely been doing this for several years; they have enough experience under their belt to make it look easy.
Get Started the Right Way
The first step is to check the purchase price. This is more important than most amateur house flippers believe. A house bought at a low enough price will earn a profit no matter what. Conversely, paying a high price for your project can mean sitting on your property for a long time before you can turn a profit.
Do your research on relative house values for the location you’re going to be working at. Look out for what prices people want to buy at as opposed to the price people want to sell. Those websites promoting “We buy houses fast for cash” can give a good idea of the minimum selling price of a comparative house.
Look at Foreclosure Auctions
Bank foreclosures are a great way to find houses selling below the market price. Make it a point to view and inspect the house before you bid on any property on the list. If you are not sure what to look for, take a professional with you. Spending some money for a consultant is cheaper than suddenly finding out that the house you bought will need its roof replaced or is in need of some other major work.
Take Care with Your Renovations
Spend wisely when it comes to renovating. Fix and upgrade the property enough for it to be attractive to buyers and sell fast. Fix any glaring imperfections and make the spaces look welcoming. Go the extra mile by adding a spare bedroom if you can, or perhaps another bathroom. Pay attention to curb appeal, too. Remember that you need to appeal to a wide audience; it will be easy enough for the buyer to add more personal touches to the decor.
As long as you don’t overdo the renovations and you purchased below market price, you should be able to turn a profit on your flip.