There are several ways to successfully invest in real estate, and fixing-and-flipping has become a popular one over the years. There’s little doubt that a lot of money can be made by flipping houses, but only after careful considerations have been made. Your first step to a successful “house flip” is to ensure that the property you select has the potential to be a money-maker.
Before you go out and buy a house to flip, make sure it possesses the following traits.
Strong Structure and Foundation
It doesn’t matter how many cosmetic updates you make to a home – if it’s not structurally sound, you could potentially have a money pit on your hands. If you notice that a home has a faulty foundation, you might want to rethink it. Problems with structures and foundations can be extremely expensive, which can eat into any profits you stand to make. Be sure to choose a property with a sound structure. If not, move on.
Workable Floor Plan
Buyers want a home that has a functional floor plan, and one that makes sense. Ideally, the home that you buy will have a good floor plan for you to work with, which will make your job of fixing up the place much easier and more cost-effective.
Typically, buyers look for homes with kitchens at the back of the house with easy access to the backyard, a spacious master bedroom with an ensuite bathroom, and an open concept living space. Try to focus on properties that are either laid out in this manner, or only require a few small modifications to create the perfect layout.
Enough Space to Add a Washroom
The number of bathrooms in a home matters. One bathroom just isn’t going to cut it. However, if you can find a home that has enough space to add another washroom, you can add a lot of value with such addition. If adding another washroom is part of your plan, be sure that there is enough space for it.
You can create the most attractive and functional home, but buyers can get instantly turned off if they make it to the backyard only to discover minimal space. While the home itself is a critical component, so is the lot. Most buyers like to see a useable amount of space in the backyard, whether it’s to entertain, let the kids run loose, or simply to enjoy the outdoors. And not only does the size matter, so does its sloping. Ideally, the lot should be level without major changes in elevations throughout the space.
Predominantly Cosmetic Changes Required
The key to successfully fixing and flipping for a profit is to spend as little time sprucing the place up as possible. The longer it takes to finish the project, the more money you’re spending in carrying costs, such as mortgage interest, utilities, property taxes, insurance, and so forth. Assess how much work would be involved in the flip and how long it will take to complete.
As with any type of real estate transaction, working with a seasoned real estate professional can help ensure that your endeavour is a successful one. By teaming up with these experts, you’ll have the guidance needed to make good decisions and get the right advice along the way.