Every house flipper dreams of profiting big on their investment. However, a good return on the investment does not only depend on repair the house and finding a suitable buyer. You have to look for some particular things while scouring the market.
The success of flipping a property on how well you can minimize the risk. Consider the following aspects before buying a fixer-upper.
Check If All the Systems are Working
All the TV shows about house flipping sing the same tune – kitchen and bathroom updates sell houses faster. It’s not entirely baseless, but there are more important areas to pay attention. Some areas such as the roof, the foundation of the house, windows, etc. are more important because fixing or replacing these things is expensive.
Besides, you have to check if the plumbing, electrical, and HVAC systems are working. You should pass up a home that has renovated bathrooms and a brand-new kitchen but with a faulty plumbing system and a damaged foundation.
If You Need to Replace Many Things
Just move on! A house can be in good condition and located in a respectable neighborhood, but it is less likely to be profitable if you have to replace most of the things. Choose a home where you can repurpose or refinish instead of buying new things and where it’s less expensive to remove outdated things.
For example, it’s more cost-efficient if you can just repaint or fix the kitchen cabinets instead of replacing them with new ones. Similarly, if the walls of your kitchen are non-lead-bearing, it won’t take much money to remove them in case if you want the kitchen to make bigger.
A home should have a versatile layout, especially in the rooms that are frequently used such as the dining room or the living room, so that you can customize it according to the requirements of your targeted client base. For example, you should not invest in a house where the design strictly adheres to traditional setups when your clientele is young families looking for a trendy, modern home.
Look for Some Costly Fixtures
Some installations dramatically increase the value of homes. For examples, a large pool of buyers will appreciate if the home has hardwood floors, a coffered ceiling in a room, tiled backsplash in the kitchen, and fixtures like them. You can just repaint or refinish these fixtures such as varnishing the floors and deep cleaning the tiled fixtures and see how dramatically these things add to the value of the home.
Dealing with fixer-uppers is a risky business if you don’t have experience and expertise. Most flippers, especially those who have just started the business, make the mistake of investing in a property if it ticks some of the boxes of their requirements. You have to figure out which aspects are the most important and what features will give you the best bang for your money.