Many investors are attracted to the renovate and flip strategy where they purchase property at lower prices, make renovations and sell at high prices to make profit. Here is how to flip a house and make the highest profit possible.
It is crucial that you buy the property in a neighbourhood that is safe and where people want to live. Look for locations with rising estate sales and other opportunities that will attract potential buyers. A structurally sound home is another thing that you should look for in a potential flip. You can find homes at affordable prices in places such as estate auctions, foreclosure listing, and estate liquidation.
Also, access the risk associated with the renovation and come up with a strategy that will enable you to make good profit. Some of the risks that you are likely to incur include purchasing the property at very high prices and renovating the house above its market price. Therefore, you need to plan for your renovation properly and calculate the expected profit before you make your purchase. You can also talk t an expert before you commit to renovating the property.
Make sure you start working on home improvements projects that will complete quickly and successfully. The renovation you should bring a return to your investment without blowing your budget or taking much of your time. Stick to cosmetic renovations like painting, adding plaster over the ceiling finishes, upgrading kitchen appliances, and adding closet storage space. Do not over improve especially in a neighbour where the value of the house is low and you will not be able to get back your investment.
Another tip to a successful house flipping is to hire reliable contractors. It helps to hire a contractor who will work with your budget and within the timeline set in order to give you outstanding results. You can determine if they are right for you by checking their testimonials and online reviews. Similarly, you can ask for a list of references so that you can inquire if the services of the contractor are satisfactory.
Finally, sell the home in order to get the best price quickly. Entrust the home to a real estate agent who will enable the property to sell in the market in order to make a great return on your investment. When you are selling the home, make sure that you set the price based on the market price of the area and not what you invested. You may also want to market the home as ‘rent-to-own’ in order to attract buyers who want to rent it with the intention of buying it later on.