House Flipping – What To Look For
February 26, 2019
Fixing and flipping homes seems like a simple way to make a large profit. However, it isn’t as easy as it looks, and it can still be a gamble to earn those high profits. The key is having great partnerships with contractors and suppliers that you trust and do great work without being overpriced. Don’t wait until buying an investment property to start looking for these partnerships, do the research first and get recommendations on whom to work with.
Create a service database including a reputable appraiser, inspector, and subcontractors for roof work, foundation, electrical, painter, and someone to assist with mold or asbestos removal. On the subject of toxic elements that can be found in a home, also look for rat droppings and cat spray or urine stench. If you’ll be doing some of the work yourself, get your subcontractor license and protect yourself.
You will also want a pest control company that covers everything from termites, bed bugs, ticks, roaches, ants, and scorpions. If you can’t find one company, you may want to have a list of companies that can service what you need. Also, in Arizona and other southwestern states, you’ll need a rattlesnake relocator in your service database, as well.
Properties available for flip have decreased since the last market crash however, they still exist. Picking the right house is very important to obtain the highest profit with a quick sale. Locate an undesirable house in a great neighborhood where values are high. Prioritize three-bedroom, two-bathroom homes, as they are the most commonly sought-out homes and you want to appeal to as many people as possible. The house shouldn’t be next to commercial property or a busy street. Houses facing north and south are also more desirable because you won’t get the evening sun in the front or backyard.
After finding the perfect home to flip, modernize it, but keep it classic and timeless. Don’t go overboard with improvements, the money put into a home does not always convert to a higher selling price. The final product home after remodeling should be in the same comps as the neighborhood. Current trends and bold colors should not be applied but new fixtures are a great way to modernize. Also, when advertising your home, there are no visuals of what it looks like now with furniture and decorations so staging is a must. Buyers feel instant gratification when they walk into a home for sale and can immediately picture it as their own. It doesn’t need to be full blown staged, there are different levels of staging to consider and it does not have to be expensive. Do not neglect the exterior of the home, landscaping with great curb appeal is a must but should also be simple in appearance.
Good planning is extremely important to being successful in real estate house flipping. Consider attending the next seminar titled, “Find it, Fix it, Flip it: Best Practices & Proven Strategies” at Arizona School of Real Estate & Business. Learn all you need to know from the professionals about house flipping in Arizona.