No two fix and flip projects are alike. The goal is to renovate properties to offer increased value and sell homes for higher amounts than their original listing prices. To hit your optimal renovations, there are a few tips every property flipper should follow.
1. Check your comps
Remember to be mindful of listings in the area of your property. Try to look for properties that have the same qualities as the home you are renovating. A house with three bedroom and two bathrooms, for example, will fall within a certain range. If the property has a pool or energy efficient systems, those differences will obviously increase the listing price. Note down price per sqft of listed homes, time on market and other features like updated kitchen, bathrooms, HVAC…etc to determine an appropriate after rehab value (ARV). Look at comps before you purchase a property and check them throughout the renovation process for market fluctuations.
2. Find out what’s happening in the surrounding area
Your listing price and ability to flip a property depends, in part, on what is taking place in the surrounding area. Are businesses setting up shop in the area? What’s the nightlife like? Is the property located on a convenient commuting route? What are the local schools like? In a way, property flippers need to put themselves in the minds of homebuyers to figure out what they would look for in a residential property. This will help you decide if you should simply flip the property or BRRR (buy, rehab, rent, refinance).
3. Don’t skimp on the little touches
While you don’t have to break the bank on Italian marble and solid gold fixtures to add value to a renovation, you shouldn’t settle for particle board and cheap plastic, either. Most prospective homeowners are looking for counters, flooring, and fixtures that are not only durable, but are aesthetically pleasing. No one wants to make extra changes after buying a finished home, so providing a turnkey living space should always be top-of-mind.
4. Defer to specialists when necessary
While some property flippers are general contractors, not everyone has a working knowledge of electrical work, plumbing, pouring concrete, carpentry, or the dozens of other skills needed to strip and renovate a property. A word to the wise: Do not think that watching a few YouTube videos will magically give you the experience that the professionals take years to learn. Always hire a specialist when necessary to prevent technical jobs from becoming major headaches.
5. Get your financing in order
Fix and flip projects require fast and reliable financing to acquire properties and keep renovation plans on track. From fix and flip lines of credit to bridge and hard money loans, whether your plan is to Flip or BRRR (buy, rehab, rent and refinance) the experts at The Capital Rams have you covered. Contact our offices today to learn more about the financing programs we offer specifically for property flippers.