Purchasing a revenue-generating asset to sell quickly for a profit needs a plan, a strict timeline, and a budget, to be profitable. Home flipping can be a lucrative way to earn great returns, and flip those returns back into - well, flipping more houses.
You can't just buy cheap property, upgrade all of the usual suspects (kitchen, flooring, and bathrooms), and expect to reap huge profits. You need to study the market, find out what types of homes people are looking for, and find a property that you can turn into that "ideal" home.
THE UPSIDE
The most obvious benefit of flipping houses is instant gratification. Rather than having to wait years to pay off the property and reap all the profits from your monthly rent check, you can enjoy immediate gains when flipping a house. And unlike the stock market which can change in the blink of an eye, real estate markets are predictable. Overall, flipping is considered a lower risk investment strategy.
THE DOWNSIDE
But there are considerable costs that come with flipping a home. Distressed properties, the types of properties that are ideal for flipping, may come at a lower upfront cost than, say, a brand new home. But repairs may require a significant investment, depending on the state of the home. Transaction costs can be high on both the buying and selling end, which is something all investors need to consider. Another important thing to consider: the market itself.
Take the story of one flipper who purchased a duplex for just $40,000. After extensive renovations and converting the floorplan to a single-family home, the home was put on the market for $170,000. What the investor failed to realize was that even though the home had granite countertops, hardwood floors, and new windows, it wasn't the type of home people in the neighborhood were looking for. He wound up selling the home one year later for just $125,000. He didn't earn a cent from this flip.
FLIPPING IS STILL PROFITABLE
You may walk away with a little less than this, but this figure is still an impressive return nonetheless. Many people who are professional flippers say they make at least $25,000 profit on the homes they flip - and some make as much as $100,000 on certain properties.
If you're looking for a quick return and have the means to flip several homes throughout the year, you can make substantial profits from your investments.
It's possible to flip 10 properties in a year, and taking home $300,000. That's a return that's hard to beat with most other investment vehicles. But you need the time and resources to pull off so many flips in a year. Still, earning even just $30,000 off one flip in a year is nothing to sneeze at.
• Replace missing fence boards
• Add sod if needed
• Mow the lawn and pull weeds
• Plant flowers to add color
• Fix or replace garage door
• Service HVAC system
• Fix and roof leaks or tiles
• Choose light and neutral colors
• Eggshell in the house
• Semi-gloss in the kitchen and baths
• Remove wallpaper
• Putty holes
• Replace town screens
• Clean windowsills & tracks
• Resurface or replace countertops
• Service or repair all appliances
• Fix leaks
• Clean out or replace tile grout
• Replace broken cabinet hardware
• Tighten cabinet hinges
• Paint or resurface cabinets
• Fix leaks
• Caulk and seal your bathtub
• Tighten your toilet
• Replace toilet seat
• Clean sink and tub drain
• Clean out or replace tile grout
• Replace broken cabinet hardware
• Replace light bulbs
• Fix or replace broken lighting fixtures
• Tighten doorknobs and hinges
• Locate keys for all locks
• Locate garage door opener
• Replace batteries
• Fix or replace broken tiles
• Clean up or replace tile grout
• Fix and clean baseboard
• Restore hardwood floors
• Professional clean carpets
Copyright © 2018 [GINABACA] All Rights Reserved
Built by Gina Baca | Powered by GoDaddy