Over 270,000 homes were flipped in 2017 alone. This is due to the fact that many individuals are recognizing the massive potential earnings that can come from knowing how to flip a house. However, you'll find this knowledge doesn't come without experience and grit.
If you want to get a feel of exactly what flipping a house will involve, read on for our top tips on getting started.
Knowing How to Flip a House
Knowing how to flip a house can be a complex and detailed process. However, with adequate research to learn more about making a profit and patience you can quickly turn house flipping from a side hustle into a full-time gig.
Finding the Ideal Property
The entire purpose of flipping a home is to be able to turn a profit. This means finding properties in ideal locations where people will be able to pay a fair amount of money.
But how do you purchase a property and invest in it within a budget that leaves room for profit? Typically this comes from looking for homes that are being foreclosed on or have claimed bankruptcy that is priced significantly lower than their actual property value.
Know the Market
So you think you found an ideal property that can use some flipping. Great! However, you want to be sure that the timing is right as well as the location. Take some time to figure out if you're looking at a buyer's market or seller's market.
If you find that it's currently a buyer's market, you may want to wait it out until the timing is more ideal for optimal profit.
Have the Home Inspected
Before purchasing the property it is important to know exactly how much money will need to be invested in order to get it in the right shape to sell.
Have an unbiased party inspect the home to give you as much of a detailed quote as possible on what the full process will cost. Then look at where the property will need to be priced in order to gain a profit, and assess whether or not this is a reasonable expectation.
Once you've purchased the home it's time to start renovating. Remember, your aim here is to gain a profit. Which means reducing the cost of flipping the home as much as possible.
If you plan on making flipping houses a long-term gig, it's wise to brush up on your home repair skills so that you can handle the majority of the restorations yourself.
Get Some Marketing Skills Under Your Belt
Another way to avoid additional cost-cutting into your profit is by enhancing your overall marketing skills to know how to sell the home on your own. Being able to sell your own property is an important part of knowing how to flip a house.
Realtors mean commission prices, which will take a good chunk out of your profit.
Instead, you can check out our blog to brush up on staging and home decor in order to create an atmosphere that makes potential homeowners want to buy.