Real estate is a lucrative field but large-scale moves can take millions of dollars of investment and years to develop. To make money from the real estate market relatively quickly, your options are limited but significantly more achievable. One of the best ways you could ensure you make a profit from real estate is through house flipping.
House flipping or simply flipping refers to the practice of buying a house or residential property with the intention of upselling it. This means you need to buy cheap properties, improve them and find buyers. Naturally, some of the most cost-effective properties you can buy when flipping properties tend to be older homes that need a lot of work.
If you want to make a quick profit from house flipping, you need some good advice.
Below are a few best practices first-time house flippers need to know.
Update Air Conditioning
Older homes tend to have outdated or dilapidated heating and cooling systems. Unless you want the new homeowners to constantly be calling emergency repair services for air conditioning, you must get rid of outdated equipment and install new ones. If you live in a state that experiences chilly weather and snow, your priority is the heating system. Many older homes still rely on radiators rather than centralized air systems. Check the integrity of the furnace and see if it needs to go.
Next, see if there are any air conditioning systems installed. These systems may no longer be optional in particularly arid states since summers tend to run much hotter nowadays. If there is no centralized air conditioning, a few wall or ceiling units will be needed.
Some houses are home to more than just people. Over the years, various pests can take residence in the nooks and crannies of any house, especially the older ones. Some pests are relative nuisances, such as ants. Others can pose serious risk of disease, like rats and cockroaches. Some can even pose a threat to the structural integrity of the building, like termites. Unless you want to be answerable to disease or animal control authorities, have the house fumigated and checked by exterminators prior to your repair.
Don’t forget to see if the yard or gardens are also home to unsavory creatures. The lawn may be the hive of executioner wasps or snakes could be nesting in a pond in the garden. These can be dangerous and turn away potential buyers.
Trim the Yard
Speaking of the yard, don’t forget to spend some time and money improving its appearance and utility as well. This is especially true of the front portions of the property as this will be the first thing people and potential buyers see as they approach. Aside from trimming the plant life and removing pests, put some thought into what kind of garden you want it to have by checking buyer preferences in your area. You can decide between a decorative garden, which is for viewing and outdoor activities, or a practical garden with a vegetable patch or herbs growing in containers.
You should also consider upgrading the property with a few pieces of hardscaping, which are man-made additions that increase convenience or utility. These can be expensive so be very careful when building any hardscaping to not go over your budget.
Build a Patio
Many hardscaping additions are expensive and could increase the price of your investment without guaranteeing buyers. For example, sure a gazebo can look attractive, but will the additional price scare off buyers instead of attracting them? The solution is to build a relatively cheap hardscape that massively increases property utility. Enter the patio.
Patios are immensely popular with buyers, with over 59 percent of new homes built featuring a patio. This is because they are cost-effective and versatile. You can sunbathe in them or host barbecue parties or extend a sunshade over it for quiet afternoons. They are also relative straight forward to build. All you need is some form of material, usually cement or hardwood planks, and perhaps a form of covering like a tarpaulin or even an electronically controlled roof. Consider building a patio if you want cheap hardscaping that could be appealing to outdoorsy buyers.
Flipping a property is always a gamble, even with all the best practices and preparation. However, you stand a much better chance at turning a huge profit if you follow sage advice and remember not to pour in more than you can afford in a single property. Be smart with how you improve a home and you can be surprised with the size of the return on your investment.
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