When viewing potential investment properties, research the surrounding area and consult with a knowledgeable real estate agent. Remember, even the best flipped house will be difficult to sell in an undesirable neighborhood. Once you have found the property, secured financing, passed inspection and purchased the house, the real work begins! Here are our tried-and-true tips for a successful flip:
1. Establish and stick to a budget. Your budget should be realistic for the necessary work and a cushion for unforeseen expenses should be included within your financial plan.
2. Do your homework. Renovations often require permits and variances, apply right way, so you can start renovating, get the property flipped and sold.
3. Develop a timeline. If you choose to do the renovations yourself or hire a professional, plan an accurate timeline of when your project will be complete. Time is money and an empty, unfinished house accrues carrying costs.
4. Know your target market. Familiarize yourself with what your target market demands, expects, and can afford to absorb the costs of your work.
5. Focus on what sells. Upgrade areas like kitchens, baths, entryways and facades, these spaces increase the value of a home and appeal to buyers.
6. Stay neutral. Don't alienate your audience with very specific choices, select color palettes, materials and appliances that have wide appeal.
7. Leave your ego at the door. When selling your investment, don't take it personally if viewers don?t appreciate all your hard work. This is business.