House Fliping: Necessary Or Harmful?
House flipping can be a very lucrative side gig. If you do the legwork ahead of time, you can minimize the risks and maximize the odds of making good money in a relatively short period of time. In real estate, good information and good ideas are worth good money.
Market Research
Some homes sell better than others. There are some general rules of thumb, such as:
Three bedroom homes sell better than two bedroom ones.
Homes in a good school district sell better.
Homes in family-friendly neighborhoods sell better.
However, general rules of thumb can be wrong in specific instances. This is why it is important to know the neighborhood and do the research on the local market.
Retirement communities will have different standards and expectations than …show more content…
If it isn't profitable, there is no point. So, it is important to keep the project under budget.
Where it gets tricky is that "following one's heart" a little bit can lead to better results in terms of making an attractive property that will sell quickly. As long as the renovations are handled in a budget-minded manner, with an eye on the bottom line and profitably in the end, it is fine for house flippers to use their intuition and personal sense of taste to guide choices.
One way that most house flippers stay on budget is by investing sweat equity. In other words, they do as much of the work as possible themselves. They only hire out parts that require skills they simply do not have, such as hiring professionals to deal with plumbing and electrical work.
Another way is just by picking the right house to begin with. Picking houses that need some polish, but are structurally sound, is one of the best ways to stay on budget. Foundation problems, black mold and other nightmare scenarios can easily eat all potential profits.
Some areas that typically pay off:
Update the kitchen.
Update the bathroom.
Add a second bathroom or a half
Market Research
Some homes sell better than others. There are some general rules of thumb, such as:
Three bedroom homes sell better than two bedroom ones.
Homes in a good school district sell better.
Homes in family-friendly neighborhoods sell better.
However, general rules of thumb can be wrong in specific instances. This is why it is important to know the neighborhood and do the research on the local market.
Retirement communities will have different standards and expectations than …show more content…
If it isn't profitable, there is no point. So, it is important to keep the project under budget.
Where it gets tricky is that "following one's heart" a little bit can lead to better results in terms of making an attractive property that will sell quickly. As long as the renovations are handled in a budget-minded manner, with an eye on the bottom line and profitably in the end, it is fine for house flippers to use their intuition and personal sense of taste to guide choices.
One way that most house flippers stay on budget is by investing sweat equity. In other words, they do as much of the work as possible themselves. They only hire out parts that require skills they simply do not have, such as hiring professionals to deal with plumbing and electrical work.
Another way is just by picking the right house to begin with. Picking houses that need some polish, but are structurally sound, is one of the best ways to stay on budget. Foundation problems, black mold and other nightmare scenarios can easily eat all potential profits.
Some areas that typically pay off:
Update the kitchen.
Update the bathroom.
Add a second bathroom or a half