Flipping houses has quickly become a way for people to make a hefty profit with very little investment. There are many pitfalls that can come along the way when flipping houses if you do not know what you are doing, though. The following guide walks you through a few tips to use to ensure that your first time flipping a house goes as smoothly as it possibly can.
Buy the House for as Little as Possible
The best way to ensure that you are able to make as much profit as you can on a flip is to purchase a home for as little as you possibly can. You need to be sure that the home is salvageable, though. A great way to get a house for a very low price is to buy it at an auction.
When shopping for a home at an auction, you need to take the time to do research about the home before the day of the auction. You need to know when it was built, how often it has been bought and sold, and how long it has been since someone has inhabited the home. This will give you a good idea of what to expect when you go to the auction.
All sales are final when you purchase a home at an auction. You are often purchasing it without ever going inside of it so you need to be sure that you choose a relatively small home for your first flip to ensure that you will have the budget needed to pay to remodel it.
Have the Home Inspected
Before you start any work on the home you need to have it inspected by a local company. They will know how to identify problems that are specific to your area, like pests, structural issues etc. If, for example, you live in up in Acadia, you’ll want a company that specializes in pest control in Oklahoma City, OK. They need to check it to make sure that there is no termite damage to the home that needs to be repaired and make sure that there are no pests taking up residence in the home.
If there are pests in the house, the pest control technician will be able to remove the pests and treat the home to make sure that they do not come back. Having a home treatment done to the house will also make it easier to sell because people will be able to rest assured that there are no insects or animals living in the home.
Do Any Remodeling that You Can Do on Your Own
When remodeling a home, there are many homeowners who do not realize that a majority of their profits will be cut into by labor costs. You have to pay contractors for every minute that they work on the home. Take the time to figure out what things you can do in your home.
Many contractors will walk through a home with you and let you know what things need to be demolished and removed from the home. Taking care of the demolition and removal of old, outdated items will save you money on labor costs.
Also, most homeowners can easily paint the home. This allows you to avoid having to hire a painting company to come and paint the interior of the home for you. Tile work and power washing are other things that many flippers figure out that they can do on their own.
Taking the time to save money wherever you can will ensure that you are able to make the biggest profit on the home that you possibly can. Hire a real estate agent to help you market and sell the home so that you own it for as short a period of time as possible.