For some time, the process of buying old houses, fixing them up, and then selling them has been all the rage. Everyone is doing it, but those who are most successful know more about the process. In this article, we’ll go over the general idea of the fix-and-flip process, as well as which fixes are more cost-effective and can help improve your profit when the process over for a minimal investment.
The Fix-It-and-Flip-It Process
It’s probably best to start with a small project, choosing a property within your means, both in terms of purchase price as well as necessary repairs. Remember, in order to make a profit, you must buy an affordable property that needs renovations. Don’t worry — the market is replete with these kinds of opportunities, you just need to avoid homes that will require too serious an investment to be saleable.
Once you know the property you want, seek to finance. Some people may be able to finance their projects out of pocket, but many go through financial institutions to get loans for these kinds of projects. Once you own the property, it is time to make renovations. We’ll go over some cost-effective repairs you can make to boost the final sale price below.
Bathroom Remodeling — In many lower-priced properties, the bathroom is definitely something that needs to be remodeled. This can include new fixtures and tiling, as well as new plumbing in some case. In order to save money on this project, try to come up with a solution that uses the current layout of the bathroom. This will prevent the expensive costs associated with repiping.
Kitchen Remodeling — Another common problem area is the kitchen. Many homeowners like an open kitchen, so doing things like adding cupboards or removing an island can be very beneficial. You may also want to consider new flooring and new countertops.
Add a Deck — Many homes benefit from the addition of the deck. It gives the illusion that the home is bigger and also gives homeowners a place to relax outside.
New Carpeting/Flooring — The carpeting and flooring of a home often gets worn down between owners. It’s not just a good place to start, it can also be an affordable way to increase the appeal and value of your project.
New Siding — New siding can dramatically improve the external appearance of the home. Since that is the first thing that potential buyers will see, it is important that it is in top condition. There are numerous options in terms of styles and materials, each with their own selling points. Home exterior experts like the folks from Aerotech in Maryland can help guide you through the advantages and disadvantages of each.
As you make your decision about which parts of your fixer-upper that you want to renovate, avoid renovations that will not bring back a big return. This includes things like putting in an outdoor pond, a swimming pool or hot tub, tennis courts, game rooms, or other amenities. These are often seen as unnecessary and significantly narrow your buyer’s market because many homeowners do not want to pay extra for these items.
You do not have to be a renovation expert to fix-and-flip homes. However, it does help to have a background in home renovation and an idea of how much home improvement projects cost and what the return will be. Try some of the cost-effective fixes in this article to get the most back when it comes time to re-sell the renovated home, and shop around with contractors who offer these services to get an idea of the cost and, of course, find the best bang for your investment dollar.