It’s hard to imagine being a newbie home flipper. You know how scary it is to buy a house and worry about the little things that could go wrong, like a dirty roof or a leaky pipe. You have no idea what to expect when you buy a fixer-upper, and you want to be as sure as you can that everything will turn out okay.
Here are some real estate tips to assist with your first-time home flipping goals.
#1 Get Your Finances In Order
Many people have a glorified idea of flipping and don’t take into account how much it will cost to renovate. The buyer has to put lots of money into the place before anyone is willing to purchase the property. If all you do is Google search “cheap renovation ideas”, then you’re going to run into some problems. You might spend less than you planned but you will get less in return for poorly done renovations. But, if you do a little bit of research, put in the time and effort, then it might turn into a lucrative situation.
#2 Start Small First
While you may feel pressured to “go big” on your first investment, for those just breaking into the market the safer option is to start small. It will be a learning experience, and there will be less at stake. Disaster areas can teach you a lot, and if the worst happens you won’t be out on the streets. Plus, it’s easy to get overwhelmed with renovations when starting out, so take it one step at a time. Learn about what’s not working first, then work bit by bit to fix the place up. You’ll learn a lot in the process, and it should lead to better results.
#3 Have Realistic Expectations
The main problem with buying a disaster property is that you’re getting into this game late: at some point, someone else dropped the ball, and now all of the buyers have moved on. That means you are not getting a sought-after property. You are getting a property with problems. Of course, you can fix it up, and in the end it will be worth more than you paid for it, but let’s be realistic—at some point you’ll be doing something like cleaning out a crawl space full of dirt and bugs.
#4 Be Prepared to Go Over Budget
Have some leeway when it comes to the budget. There are two different kinds of disaster properties: those that need a bit of TLC, and those that need a lot. The former can be bought for less, the latter will require more money to make them into liveable spaces. If you’re not willing to spend the cash needed for the latter, then a fixer-upper project might not be for you.
No longer sure the home-flipping business is for you after all? Reach out to start looking for your next turnkey home.