You’ve watched all the popular house flipping shows. You’ve decided that this is something you want to try doing. After all, they make it look really fun on television. Unfortunately, you’re not sure where to get started. If you are interested in flipping homes, there are several things you should consider if you want to find the right home to flip.
Consider Your Abilities
On those house flipping shows, the people often have several people helping them. At times, it may seem that they have an unlimited amount of resources at their fingertips to make their home flipping project go well. While you may one day get to that point, as a first-time home flipper, you, and maybe a few close friends and family members, will be doing the majority of the work. With this in mind, it is important to consider your own home repair abilities. When in doubt, it’s better to go with the easy flip that you know you can do rather than to dig yourself in too deep with a flip that will end up costing you more than its worth.
When doing your first flip, you may want to pick one that’s an easy fix, especially if you do not have a lot of home repair skills. A home that mainly needs cosmetic repairs, such a fresh coat of paint, new carpeting, or even a few new plants in the backyard, is likely a good pick. If you can’t do these projects on your own now, you can often watch the professionals do them. Then you can do the project yourself next time. As you get more comfortable doing a flip, you can take on harder projects. Even with an easy flip, though, you may need to call a few professionals, such as an electrician, a plumber, and a roofer to ensure that the jobs are done right.
Consider the Return Versus the Investment
The larger the profit, the better. That does not always mean, though, that you should go with the cheapest property in hopes of making extra money. When looking for the perfect flip, the low initial cost is one thing to consider. If, though, the home repairs cost quite a bit, it might be worth considering a slightly more expensive home that will take significantly less time and money to repair. Not only will you make more money, but if it takes less time, you can dedicate your time and resources to another project sooner. It will require research to determine homes that are a good investment versus those that aren’t worth it in the end. As you develop your home repair skills, homes that would not have been a wise investment when you first started may be worth your time later.
If you find a home that seems like a great fit but that is not worth the initial investment, you may be able to talk the seller into a lower selling price. While the seller may not always agree, it is worth a try. A property that originally seemed too expensive might become your perfect flip when the price is right.
Consider Your Vision
Perhaps one of the most important things to consider when it comes to picking your perfect property to flip is your own vision. A home that is a great flip for one person might not be a great flip for someone else. If you’re not excited about a flip, and if you are struggling to see how the home will ever become something great, it likely isn’t the right one for you. If you can see a home’s potential from the beginning, the process of making it into something great will be more enjoyable.
If you need help financing your first flip, contact us. We offer short-term loans for home flippers, and we want to help you achieve your dream of making an ugly home into something beautiful.