Getting into the business of renovating old homes can be a bit tricky if you’re not sure what you’re doing. Whether your goal is to create your dream home or make a profit, house flipping is within your grasp. Let us share with you a few different tips for flipping houses that will put you on the right track.
Know Your Market
To find homes that will turn a profit, you need to understand what type of property is currently in demand. Whenever you consider purchasing a home to flip, start with doing research into the local housing market to see where people want to live, what amenities or utilities they most desire, and what the surrounding area is like. This is key to ensuring you sell the house off in a timely manner after the renovations have been completed, enabling you to make a profit.
The 70% Rule
Whenever you hear about different tips for flipping houses, the most consistent advice you’ll receive is to adhere to the 70% rule. Even the most experienced home flipper sticks to this rule which states that investors should pay no more than 70% of the after-repair value of a property minus the cost of the repairs needed.
Consider Your Materials
The materials you use in a home can have a drastic effect on the appeal of the home and on the costs of renovating it. For instance, tile is not only a practical choice price-wise, but it is also a necessity for bathrooms because of its ability to avoid moisture buildup. Tile can also be fantastic for a creative flair. Turning sink backsplashes into beautiful designs becomes a feature, as well as a practicality. On the other hand, barn wood will cost more, but its unique design can’t be replicated by any other material, and it thus becomes a feature all on its own.
Network With Buyers
Before you even start renovating, you should make the effort to network with potential buyers to generate interest in your projects. The most ideal position to be in is to have a buyer lined up before you even begin renovations so that the house is sold right away. However, to achieve such an ideal may require you to have done a few projects under your belt as references of your work.
