Real estate flipping is a great way to make money, and the average ROI in 2022 for flipping a house was 26.9%.
While house flipping can generate sizable profits, you'll need to make sure you do things right. If you go in unprepared, don't expect such profits - you might even suffer losses. Having a good understanding of the practice and seeking professional assistance will help you get the most out of your efforts.
Keep reading for five key tips that will help you fix and flip homes.
1. Make Sure You Have Enough Cash
Every real estate investor should have a strategy, and if you can't afford your strategy, you'll fail quite quickly. In most cases, you'll need about 25% of the value of a property for the down payment. Having more is ideal so you have a bit of a safety net.
Look at how much you have to spend, and multiply it by four. This will give you an idea of what you can afford and you can then compare this to suitable properties.
2. Look in the Right Places for Discounted Properties
When most people buy houses, they'll look at regular real estate listings. These may be ideal for livable homes at a reasonable price, but that's not what you're after.
You want to find the best deals, and these typically come in the form of homes that need renovations. Wholesalers, local auctions, and foreclosure listings are ideal for this. You can even find email lists so you'll get alerts about great opportunities in your area.
3. Get a Professional Inspection
Flipping houses is all about maximizing profits, so you don't want to be hit by any large unforeseen expenses. A professional can inspect a home to see if there are any major issues that you otherwise wouldn't notice. In many cases, there won't be any huge problems, but it's always best to be sure so you don't end up losing money.
4. Hire Suitable Contractors
Some house flippers do their own renovations, but if you want quality results, hiring contractors is the better route. Make sure you look for reliable contractors that have plenty of experience in the work you need.
Don't rush into things. Look at different contractors and assess who will fit your needs best. This is especially important if you're new to house flipping.
5. Call a Professional When You Need Help
Even if you feel like you know how to flip a house, there can always be complications and challenges, even for an experienced flipper. With that in mind, hiring professionals can help you at various stages.
This may be in terms of the renovation work, or when it comes to actually selling the property. Marketing properties isn't always simple. Getting professional assistance can make it far easier to sell so you can move on to your next project.
Real Estate Flipping
There are many benefits to real estate flipping, but it's important to also understand the challenges. Don't rush things, and make sure you hire the right professionals to help you.
The Burgh Property Management is a full-service property management company. We can help you with all kinds of tasks that will make your house-flipping journey easier. Check out our seller resources to see how we can help you sell homes in your area.
