So, you took the plunge and bought your first investment home, and now you could really use some house flipping tips right?
Well, if you did your math right, then you should have purchased this home under valued due to repairs or a general untidy appearance. You should have purchased it, in a neighborhood of higher priced houses, with the intent of reselling or flipping your house for a similar price.
You would have come up with a list of repairs and renovations, that you could do to this investment home, and then hopefully make some money with your sell it right?
House flipping can be scary, but also the returns can be great if you just follow a few house flipping tips to save you time and money. The idea, is to purchase the house, spend some money on repairs, renovations and decorating or staging, then flip it or sell it. You make your money by deducting the house cost, expenses (such as legal fees etc) carrying costs (payments each month you own it and utilities) and real estate fees to sell it again from the finished selling price. The difference is your profit.
House Flipping Tips - Don't Out Price Yourself
If you are in a nice neighborhood, but not high end houses, then you need to stay away from renovations that will out price your local market. If you are in an area of 200,000 thousand dollar homes, you are not going to be trying to sell yours for 300,000 or you may be on the market for a long time, keep this in mind when making your renovation budget!
The idea behind house flipping, is to not have this home longer than 90 days if you can help it, as each month this is costing you. But you don't want to replace everything in the house at great expense to quickly get it on the market.
Here are a few house flipping tips, that could save you money and get the return on your house flipping investment.
House Flipping Tips - Cleaning
Many times, and I found from experience, unless the bathroom is totally falling apart, many times a really good clean does wonders. I am serious here to. If the bathroom seems solid but gross, there is hope! Get yourself some baking soda and a sponge, and really try cleaning that sink, and bathtub, before you decide to replace them. Sprinkle the baking soda on a damp sponge and then scour away (wear gloves of course!)
It is amazing how just weeks or months of grime can make a sink and tub look horrid. If this house was never really taken care of, it could just be layers of grime. If you are willing to take some elbow grease, and get on some cleaning gloves and really try scouring the tub and sink, you may just be surprised what is under all that grime!
Baking soda, really is a powerful scouring cleaner. The plus side to using baking soda, is that is freshens the drain as you rinse.
The same goes for the tiles or tub surround. Take a tooth brush and try cleaning the grout with baking soda, but if that does not work then try bleach,
House Flipping Tips - Replace Caulking To Look Clean and Fresh
Remove the caulking around the tub and redo it. Make sure to use caulking for bathrooms to prevent mildew. Home Depot sells a tool that helps to keep a clean looking line of caulking. Replace the faucet for something more modern and your tub will look new again.
If the toilet is looking brown or rusty, pour bleach in there and leave it for a couple of hours or overnight. Once you have got rid of any stains, especially under the rim with the bleach, all you need is a new toilet seat and this toilet is as good as new.
House Flipping Tips - Kitchen
Take your baking soda and sponge and wash the stainless kitchen sink, and see just how sparkling it will come up.
Keep the sink and replace the faucet set to look as good as new. If the cabinets are solid, before you rip them off the wall and spend thousands, get creative as to what you can do with them. This is one great house flipping tip. The kitchen can set you back big time, but you still want it to look new.
If the cabinets are wood and just grimy, get wood cleaner and try to clean them up and then change the hardware.
Or you can prime and paint them a neutral color, plus new hardware.
Sometimes just spending the money on a new countertop and backsplash can create a new look to a tired kitchen.
Although there are lots more areas to work on when house flipping, the kitchen and the bathroom can cost a lot of money.
The above house flipping tips could save you a lot, it is amazing just how much difference cleaning can make, in an otherwise solid house. If the house you are looking to flip is way past cleaning, then you had better allow a lot of money for the renovation and repairs, and reflect this in your offer.
One of the biggest house flipping tips to learn, is not to get so excited and allow your friends and family to start trashing the place and kicking down old kitchens like you see on the TV shows. You have to remember, they have a entire crew in the background that puts that house back together during commercials and unlimited money, you don't!
Friends and family will get excited, but unless you have control over the chores to be done, they will get carried away. In a house we were recently working on, everyone was so excited to rip out the old carpet they just started ripping away, and baseboards started breaking, so we had to replace them. There has to be an order to this process! So, you need to be in control, and get in that house by yourself first, and come up with a game plan for the work. Decide what needs to be contracted out, and how much you can do yourself.
Take a walk down the local Home Depot or equivalent and see what is on the market for the latest products and prices. This will give you ideas for your house flipping project.
So, take your house flipping one step at a time, and come up with a time line for your cleaning and repairs. The more you can save in a house the more money that stays in your pocket.