Let's Flip Your House
House flipping is one of the most lucrative corners in the real estate industry. However, it’s only successful if the property is truly flippable. All too often investors buy a property that requires major renovations or one in a less-than-desirable neighborhood. When this happens, the house is often sold at a loss.
If you’re a current homeowner who is interested in renovating and selling, you too can join the world of flipping. But a successful flip is easier said than done.
Here’s what you need to know.
Is your house flippable?
Each home is different. Here are some factors to consider when determining if your house is flippable.
In deciding whether your house is a good candidate for a flip, you’ll want to consider the overall condition of the home. Is the house livable? Are there major issues that have gone unfixed for months or longer? Is the exterior of the home well-kept?
Ideally your home should be in at least “okay” condition. If your home has major structural issues or needs a major expense, such as a new HVAC system or roof, flipping it may not be worth the time or money.
When flipping your house, it’s expected that you’ll have some renovations and projects to do. However, they shouldn’t cost an arm and a leg. Spending tons of money on a home that you plan on selling in the near future is often a recipe for disaster.
Beyond the physical characteristics of your home, there are other factors that determine whether your house should be flipped. One of the biggest factors is location.
Location plays a huge role in the value of your home. Not only does your state and city matter, but you'll also want to consider your neighborhood as well as the school district.
Is your home conveniently located near major travel routes? Are you in proximity to stores and public transportation? These all increase your home's value. Living close to a highway or airport may decrease value.
You'll also want to consider who is buying in your neighborhood and whether your home fits their needs.
Aside from looking at your home, you’ll want to look at the homes selling around you. Comparable properties, which are those with similar lot sizes as well as the number of bedrooms and bathrooms, impact your home’s value.
Consider factors such as:
• Average selling price of comparable homes
• How long they stay on the market
• The condition (interior and exterior)
Seeing what comparable homes are selling for in your neighborhood can help to determine if your house is flippable as well as which projects are must-dos.
Quick and impactful ways to update your home
When it’s time to sell, you'll want to get the highest profit margin. Getting the biggest bang for your buck is even more important if you’ve spent your own hard-earned dollars flipping your house so that it’s ready for the real estate market.
Some of the quickest and most impactful ways to update your home include:
• Boosting the exterior (curbside appeal is crucial!)
• A fresh coat of paint
• Upgrading appliances to a modern finish
• Adding energy-efficient features
• Small kitchen and bathroom upgrades (ie. cabinet refinishing)
• Adding storage
In flipping your home, you’ll find that the simplest changes often have the biggest impact. A fresh coat of light, neutral paint will make your home look bigger and fresher. Making small upgrades in the kitchen and bathroom are sure to provide a great return on investment.
Knowing what changes to make is crucial. Completing large-scale renovations is not only expensive, it could also turn out to be a huge waste of money. Flipping is all about making the home appealing and livable, not making it perfect.
Hire an experienced home improvement contractor
Determining if your home is flippable, let alone deciding which projects to tackle, is easier said than done. If you want to get the job done right, the best decision you could ever make is to hire a home improvement contractor that knows the ins and outs of house flipping. Finding a contractor that has some real estate investment experience is even better.
With the right general contractor, you don’t have to make all of the important decisions on your own. A trusted contractor will help with prioritizing and completing certain upgrades and renovations so that you get back most, if not all of the money you put into your home.
Looking for a home improvement contractor that knows Chattanooga real estate? Choose Home RX. We have all of the systems in place that guarantee a smooth process from beginning to end.
Home RX is known for providing high quality renovations and remodels throughout Chattanooga. You’re going to love how your home looks!
Ready to get started? We can’t wait to discuss your house flip project. Contact us today!
If you are a Real Estate Investor with several properties in your portfolio to flip, let us recommend contacting our partners at Larossa Construction. When you hire Larossa, they take care of all decisions. The system they have in place insures a hands-off approach for their clients so they can have peace of mind.