No matter how long you have been flipping houses, there is always something more to learn — some nugget of wisdom to be gained through anecdotal evidence, hard-earned personal experience, or through continued education (which we think is the easiest path). In an industry like house flipping, where you stand to gain or lose so much depending on the outcomes, being smart, being prepared, and being unattached are all vital skills.
In today’s blog from the real estate investment education experts at Real Estate 360 Pro in Atlanta, we will cover five of the most important things to keep in mind when flipping houses. These tips are excellent reminders for seasoned house flipping veterans and essential guidelines for those new to the house flipping aspect of real estate investment.
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Add a Buffer Into Your Renovation Budget
One of the most important rules of house flipping to remember is that you can’t see behind the walls. In essence, this implies that every single house has some unknown aspect, possibly even to the former owners, that will take up more time and money than expected. While this may or may not turn into a major hurdle for you, planning on building in some extra wiggle room to your renovation budget to address these kinds of situations will never leave you disappointed.
Be Realistic About Renovations
Keep perspective about your long term goals for a property flip. Are you looking to do this fast, or to maximize the return (hint: this is often the same thing)? Make sure to consider the return or renovations that will help you sell, can be completed quickly, and that you know you have a trustworthy team to accomplish. Paint, windows, and floors are going to be your bread and butter, but after that, trendy installments and technology can be quick and lucrative. Either way, keep the projects limited to what you know you can accomplish to meet your desired sell-by deadline.
Buy And Sell In The Right Neighborhoods
Purchasing and fixing up older homes in growing or gentrifying neighborhoods is almost always a good idea. Doing the same in a neighborhood with bad schools, high crime, and other malefactors isn’t a great idea. You aren’t likely to spark a gentrification movement on your own, and you might end up holding onto the house for longer than you ever intended.
Know Your Pricing/ Work With a Trusted Team
Contractor and material costs can be one of the biggest variables in the house flipping process. That’s why knowing when a contractor is overcharging is so important. This is also why so many house flippers build relationships with a handful of contractors whom they know, trust, and enjoy doing business with.
Know Your Exit Strategy And Don’t Be Scared To Use Them
Holding onto a house you were intending to flip for longer than intended is a surefire way to lose money. Know your exit strategy and don’t be afraid to use it. Selling at a minimal profit, or even a small loss, is significantly better than incurring loss month over month in the form of mortgage payments.
Learn everything you need to know with house flipping and real estate investment education from Real Estate 360 Pro today.