Hunting for the perfect fix-and-flip property is always exhilarating. However, clever fix and flip investors are conscious of the money, time, and talent, that it takes to profit from fix and flip properties. If you are planning to make a real career of fix and flip investment, take heed of these crucial hints.
Planning is fundamental to fixing-and-flipping. Plan every step of the way and work alongside real estate lawyers, realtors, general contractors, accountants, and lenders to track your initial budget for each project and how much you actually spent on each project.
Look at Neighborhood Comps
Comparing prices within the neighborhood will give you a clearer idea of what your budget for renovations and potential goal should be. If most of the neighborhood’s homes are selling for around $300,000, there’s no need to go overboard on improvements such as top-of-the-line appliances you’d find in a $600,000 home. Looking at neighborhood comps will keep you in check with what the rest of the houses in the neighborhood are going for.
Choose the Right Property
Know your market so you can pick the best property. This is hands-down the most critical factor to a successful fix and flip investment. Have a set of comps for recent property sales in the area and estimates from reputable contractors at-hand when estimating the value of a property. Using knowledge from these contractors will help you visualize of determine the cost of repairs and see if the property is right for you.
Don’t Fear Creativity
When flipping a house, you’ll be confronting construction in old homes, faulty infrastructure, and quick deadlines. Think about the layout of your property and envision your final product. Will you want to add a bathroom? Knock down walls to open up the living space? Any reconstruction ought to planned in advance, but don’t hesitate to get a little creativity when facing obstacles of repurposing a property.