Flipping homes is a smart way to generate real estate income. Flipping homes can be done by anyone who buys a house. If done correctly the flip will provide a good financial gain. The flips also improve neighborhoods and provide homes for people.
Growing up I watched my Mother flip houses. I spent many weekends watching her paint, change light fixtures, hang ceiling fans and do yard work at various properties. These were her flip houses. Mom would purchase homes that were dirty, dingy and needed small repairs. She would use her own sweat equity to keep costs down and then would rent the property out or sell the property when the project was finished. She was a successful flipper and that is where my love of real estate began.
- Location, Location, Location - Try and find the worst home in a good neighborhood or the smallest home in a good neighborhood. The return is better on these properties because they allow buyers with less money to live in their dream neighborhood.
- Good Bones – Make certain the home has good bones. Get a home inspection or have someone you trust crawl under the house and look in the attic, check plumbing and electrical, ensure the foundation is in good shape. You don’t want costly surprises.
- Negotiate - Always try to get a better deal. You don’t want to leave money on the table by not asking for a reduction.
- Sweat Equity – Do as many improvements you can without paying for labor. This keeps costs down.
- Neutralize - Use a neutral pallet of colors that will appeal to many tenants or buyers.
Are you considering flipping houses? I can help!