The fix n flip method of investing has become all the rage in recent years, among both experienced investors and newcomers alike. This is, perhaps, in response to the many home design television shows that have sprouted up around this issue, and made it seem almost like a simple venture that’s guaranteed to make a large profit. However, taking on this type of project can be challenging, especially for the unexperienced. Fortunately, there are a few tips anyone can follow to help make their next project a real success:
Know Your Limits
When it comes to making your initial purchase, never, ever overreach when it comes to your budget. Know how much you have to spend on this part of the project and stick to your numbers at all costs. This way, you can be sure you won’t need to go over your limits during the renovation portion of the project, and you won’t be biting off more than you could chew.
Familiarize Yourself With the Local Market
Knowing your local market is a must if you really want to get a good deal in both the buying and selling processes. Take the time to observe any local trends when it comes to the type and price of housing that’s been selling in recent years. Has it been rising or falling? Are there any particular neighborhoods you’ll want to invest in to maximize your profits? These are just a few of the details you’ll want to pay attention to for the best possible fix n flip experience.
Know What Your Buyers Want
You can’t simply throw a house together and expect buyers to pay top dollar for it. Rather, take a look at the homes in the neighborhood you’re working in that have been selling, and observe the most popular styles. Ensure you have enough bedrooms and bathrooms to make the space appealing to a growing family, and ensure that the kitchen and master bedroom and bathroom spaces have modern amenities and other important details.
One surefire way to make sure your house doesn’t sell is to let it sit after completion without paying attention to it. Advertise your recent project to ensure potential buyers are able to see the potential in your finished product.
Regardless of how much you spent throughout the course of the renovations, never overprice your house when you’re looking to sell. Of course you want to get your money back, but setting your price too high discourages others from seeking out more information on the house.
By following these 5 tips, you can help ensure that your next fix n flip project is a success, and you’re getting the returns on your investment that you really deserve.