We may not agree with many of the policies that are being placed upon us, but one thing is for sure, Benton and Franklin Counties w... Read More
The Truth about Real Estate Flipping
Everyone’s heard about the late night infomercial that claims to teach you everything you need to know to become a millionaire through flipping homes. It seems that everyone knows someone in the real estate market whether they are an agent or an investor.
What Is Real Estate Flipping?
Flipping a house consists of buying a home in need of repairs and improving the home as quickly and financially efficient as possible. The majority of first time home flipping experiences have dreams of making incredible amounts of money in a very short painless experience but it is never that easy.
You should accept the fact that issues almost always happen in some phase of the process. You need be completely in the know about the area surrounding the property to help you determine which improvements are wise to invest your money into for the maximum return.
Finding a Profitable Property
A common way to find an investment property is to take a car ride around a medium range area and search for run down homes with solid structures that have possibly been on the market for a while. Many times these homeowners are very anxious to sell the distressed property and with most homes needing repairs there is room to negotiate.
Considerations before Buying Property for Flipping
Before purchasing a property for flipping purposes you need to insure that the home fits different criteria to insure that it is a sound investment decision. Find out if the neighborhood is an area that is growing and other buyers would be interested in. If there are too many homes for sale, the market rut will push the selling price of your home down no matter how much you fixed it up.
Make sure that the repairs that are needed in the home are types that you can easily fix and are inexpensive. Before making an offer on a home you should make sure that the repairs that you will be making plus closing fees will still leave you with a great enough net profit.
Before you purchase your investment property it is recommended that you set up a budget on necessary repairs and stick to this. You are not trying to make this into someone’s dream home but rather a stable property that is move-in ready.
Try to save money whenever possible. Ask friends and relatives to help out with your project. Shop around to find the lowest prices on materials and try to get discounts whenever you can.
You should always have complete professional inspections performed on a home prior to purchasing to make sure there are not any extreme problems such as foundation problems or water damage. Hire a professional licensed contractor to do any repairs that are too difficult for you.
The biggest mistake people make when they are flipping a property is paying top of the line prices for top of the line materials. Quality is important to any home buyer but this is not going to help you sell the home. Make sure you remodel based upon the area, marble floors and granite counter tops are out of range for a mediocre neighborhood. Stick with hard wood floors or carpet and a laminate counter top.
Call us, 509.438.9344, Email us, or fill out the contact form below.
We respond right away! -Colleen Lane, Realtor®
Latest From Our Blog...
Open House (Virtual): 483 Aimee Drive, Richland WA 99352 This virtual open house is best viewed on a full screen on a larg... Read More
Women of Washington Wine | The Walter Clore Center | Prosser, WA | Aug. 22, 2020 | The Walter Clore Center | 6:... Read More
Are you looking for something to do this weekend in the Tri-Cities Washington or in the surrounding area? Then check this out! We h... Read More
We will update the 2020 2021 Benton Franklin Fair and Rodeo information as we receive it: The 2020 Benton Franklin Fair and Rode... Read More
From this year's 2020 Columbia Cup Hydroplane Races on the Columbia River about next year's 2021 Columbia Cup Hydroplane Races on t... Read More
Not sure what is going on with Second Saturday Uptown Shopping Center Art Walk in Richland given the current Covid-19 climate,... Read More
Apparently the 2020 70th Annual Art In The Park at Howard Amon Park, Richland WA is still on. From their website: We a... Read More
What is going on with this year's 2020 Riverfest? Not sure what else to post except that our family will miss it if Covid-19 has it... Read More
Not sure what is happening with the Women Work Art Show, but hopefully there will be one this year. Stay tuned... Last yea... Read More