It can be a pain if you run into problems like uneven floors, an older bathroom, wood rot and mold when trying to flip a house. However, a house of these flaws could be something lucrative for an experienced house flipper according to ABC News.
Reality television show “Flipping San Diego to Flipping Boston” dropped a few tips on what people should avoid when flipping homes. The trend that went national buying real estate lesser than the market value and spending money to make repairs and reselling the home at a price higher is how you make profit.
Since they are experts at this sort of trend, they shared some of the problems house flippers run into:
1) When purchasing a home, don’t overspend
The two hosts of the show Kim Williams and Maria Powell advise new home flippers to pay close attention to your budget from the get-go. Williams and Powell also urged people not to fall in love with a house the moment you walk in. Extra charges could be implemented as well as upgrades could come apart of the process.
2) Disregarding improvements
Powell speaks of some real estate not needing as much as the next. Adding carpet or paint to the walls is not something that could be done quickly and cheaply. However, if the kitchen has appliances that need to be overhauled or the bathroom needs plumbing, which could be more costly. Although these upgrades could pay dividends when it’s all said and done.
3) Get the house inspected before purchase
There could be major problems or easy fixes for the real estate. Before closing the home, an inspector should go through and find out if there are blemishes that can’t be seen by the naked eye.
4) Research the neighborhood
It is important to research the neighborhood before buying a home. Take notes like to see if the community is not only friendly, but that a retail store is close. This selling point could be a make or break for prospective homebuyers.
“It has to be an area that’s up and coming, and it has to be an area that sells quickly,” Williams said to ABC News.
5) Refrain from providing payments to contractors until the end
Williams states that when she began flipping houses in Charlotte, the contractor disappeared before the job was finished after the two had paid up-front to install wood flooring and various other job.
6) Research what permits you need
Depending on what state you are attempting to flip your house in, the permits required could vary. Some states need you to sell with a real estate license, while some must be licensed as general contractors.
Always apply for the correct permits, and then double check to see if the local government gives you the correct ones.
7) Have a backup plan
When the house has been flipped, Powell urges prospective house flippers to have a plan of attack for back-up. That being said, renting a home until he next flip, in today’s market would be a good idea.