Although television has made house flipping well-known, it’s been around longer than the popular home shows. Homebuilders, contractors, real estate agents, and investors have always sought great deals to fix up just to turn around and list the house. Let’s discuss a few tips for becoming a house flipper. You may find it’s the right fit for you.
Find an Agent
Building a trusting relationship with an agent when becoming a house flipper is priceless. They are eager to create a relationship with investors because you both help each other out. They search for properties for you, and in turn, you give them the listing when it’s time to sell. Agents bring buyers and sellers to the house flipper they’ve partnered with and have connections you won’t have. It’s worth sharing a small percentage to gain all of this help and information.
Set Your Expectations
There’s no need to set the bar too low but do be realistic about your expectations. Don’t expect to purchase a home, flip it, and make millions. If you do, that’s great and you should consider teaching others the art of flipping! However, the reality is that, in the beginning, most flippers break even or possibly lose a little as they slowly but surely build their portfolio with house flipping.
Rent or Sell
Plan and decide if you’ll sell or rent out the homes you flip. It can vary, and that’s up to each house flipper. Make a choice according to where the house is located. If it’s in a suburban area where all of the homes have mortgages rather than tenants, then you probably need to list it. If it’s a city loft, then renting might be the best option.
You’ll also need a clear understanding of the rental process and all it entails. Technically, you own the house you’re flipping so certain laws and rules apply. Renting is a great option if you ask the right questions and protect yourself by following all necessary requirements.
Doing the Work
Understandably so, it’s tempting to do all of the work of fixing up the house on your own to save money. If you’re completely capable, that’s great. If you’ve never changed a lightbulb, not so great.
Remain realistic about what you can and can’t do. Also, consider how much time you’ll save when hiring professionals for certain tasks. Maybe you can paint all of the walls, but you need an electrician to change out the light fixtures. The time you’ll save and the peace of mind knowing it’s done correctly are worth that small cost. In the end, as you build your portfolio of house flips, those costs will become less of an issue.
Keep It Simple
Make the home look beautiful, but don’t go overboard. Most house flippers are proud of their work, and rightly so. Your name is stamped on the project, so of course, you want it perfect. Just remember, if it’s too personalized, potential buyers may shy away. Keep the improvements stylish yet neutral. Buyers want clean and well-built.
What do you think? Is house flipping for you? If so, use our tips for becoming a house flipper and start your real estate investment portfolio. Here’s to happy flipping and potential passive income!