Getting started with house flipping is a process that can become complicated. However, if you follow some tips from those who have been there you will likely be able to turn house flipping into a steady income.
Get A Professional Inspector
A lack of experience in construction often means you may not notice every structural problem a house might have. Experienced house flippers never make a purchase without having a professional inspector come out to the property first.
Obtain The Proper Building Permit
Before you start any repairs or improvements make sure you have acquired a building permit first. In many cases, you will need this permit in order to get a bank loan to pay for the repairs and improvements needed.
Research The Neighborhood
Before purchasing a house for flipping it pays to research the neighborhood the house is in. Think about the demographic you would like to eventually sell the house to. If the demographic is a young professional, you’d want to purchase a house in a neighborhood full of them. The same applies if the demographic you are targeting is families with young children.
Work With A Real Estate Agent
Unless you have prior experience selling houses, it is always best to work with a real estate agent when house flipping. They will likely be able to get a better deal on a house than you would be able to on your own.
Have Realistic Expectations
As a house flipper, you won’t necessarily make money off of every project you complete. This is especially true when you are first getting started. Many new house flippers have reported that on their first few projects they either broke even or lost money. It can take time to start gaining profits from the projects you take on.
Keep Improvements To A Minimum
When it comes time to flip a house, resist the urge to make as many fancy improvements as possible. The more money you pour into a project the smaller of a profit you are likely to make from it.
For more tips on house flipping, please contact JHF Capital.