As a mother, you know better than anyone else how useful an extra stream of income can be – even if your kids are well-provided for.
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Given the way the housing market has bounced back, flipping houses has seen a surge of interest lately. It has proven to be quite the lucrative real estate venture for people who can make emotionless decisions. In the following, we’ll go through a handful of tips you need to start if you want to be successful.
1. Take Into Account The Renovations Needed
To start with this, you need only understand the neighborhood where your prospective property is located. If there are schools in the area, then it’s likely that your biggest pool of customers will be families; thus, focus on renovating the family room and making it look inviting.
If there’s water damage from previous owners, mold, or fire damage, the professionals at RestorationElite work well with numerous residential properties; and, to help you keep your costs down, they perform all work with no hidden fees. It’s all about preparation with a family house, and making the place look home. Just think about the kind of house your own children would want to walk into.
2. What Does The Market Look Like In That Area?
This is very helpful as a guideline to how to price the home you wish to flip. For example, the temptation to overcharge for the renovations you have done is tempting; but if it drives the price of the home noticeably higher than the surrounding properties, then you’ve priced yourself out of that market.
To help you out with this, just check out the recent home sales in that neighborhood. Knowing how long it takes (on average) to make a sale should be the barometer for how long you hold a property before flipping it. The beauty in this approach is that you can rent it out for a while when a market is down, and then sell it months or a year later when prices rise.
3. Customer Education – Account For All The Work You Had Done
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It is in your interest to educate your buyer if you had the home comfort system upgraded or replaced. No matter what work you’ve had done, and what contractor you used, it should be noted.
Kitchen and bathroom renovations are generally big ones for new homes. They tend to have the highest resale value. Improving them with amenities allows you to charge a considerably higher price. It is a good idea to have before and after pictures, too, to really impress the prospective home buyers.
Oftentimes, the same professionals that perform one function can do multiple, which helps you save both time and money by combining services. For example, the service technicians at PlumbingFix will perform drain cleaning, leaking pipes, sewer line repair and many more for both residential and commercial properties.
4. How Are You Going To Pay For It
Usually, the start-up capital is taken care of by loans – unless you’ve been saving up for a small business venture for years. After you understand the market and the kind of house you’re looking to flip, the next order of business is to add up all of your expenses. What does the short-term loan look like with an interest rate based on your credit history?
Be sure to price in the cost of maintenance and utilities for the next 12 months, as a cushion. You’ll find that preparation of this caliber leaves you a good deal better off when you embark on your potentially lucrative home flipping hustle.