Flipping real estate isn’t a new concept. People have been buying houses, fixing them up, and selling them at a profit for years. Most people that go into the business need to take a very hands-on, high-maintenance approach and learn by doing. It’s a steep learning curve that requires good intuition and smart decision-making abilities.
Of course, some sage advice remains extant regardless of whether you’re just starting out or are an experienced house flipper. Check out these techniques from real estate professionals and house flipping experts that can help you maximize your returns.
1. Set a realistic budget
Don’t wait until you’ve purchased the property to start thinking about the repairs you want to make. Evaluate the selling price of the home, determine what changes you want to make, find out the cost of those changes, and factor time into your decision.
Setting out your renovation plans and budget at the start will not only help determine whether a property is worth the effort but also help you stay within budget. The final price of the house after renovations shouldn’t be higher than the average cost of homes in the neighborhood.
Expert tip: If you don’t have a background in construction, be sure to consult with a contractor about the price of the changes you want to make.
2. Leverage existing spaces
Most house flippers agree that increasing the square footage of a property is an excellent way to increase property value. However, this doesn’t necessarily require breaking down walls to create a larger living room or adding a new bathroom to the floor plan. You can also increase the livable area by putting to use idle elements in the house such as a reclaimable porch, spacious attic, unfinished basement, or unnecessary garage.
Expert tip: Opt for sleek interior doorways for smaller rooms such as bathrooms or pantries to free up floor space that would be used as door clearance otherwise. Try sliding doors or pocket doors instead.
