We all love HGTV, right?! And while remodeling and flipping houses offers great risks and great rewards, making for great entertainment, the truth is it’s a lot of work and a lot of tough decisions.
But if you think you can handle all of the ups and downs, and you have the enthusiasm for fixing up and selling homes, then it could just be the right fit for you. Before you start that journey, we have a couple of tips from our agent, Scott Hurd, who has not only flipped a house himself, but has also seen a lot of homes as a real estate agent and knows what sells.
Tip #1 - Know your Limits
The overall goal is to make your house look and function better than its current condition, so that you can sell for a profit. So first things first, make sure you know which home improvements you can complete quickly and if there are projects that need to be completed - roofing, tiling, sheetrock, etc - and you don’t have the skills to complete that project, do yourself a favor and hire a professional.
It’s easy to spot the difference between a flip that is professionally finished and one that, well, isn’t. But that being said, if you can complete a project yourself and it looks as good as if it were professionally done, then you can save yourself a lot of money.
Tip #2 - Know your Budget
Budget is your number one priority during a house flip. After all, you want to make money off this project and there are some flips that actually end up costing the investor more than they make. So make sure you set a budget for each project, gather multiple bids from contractors and don’t get distracted along the way.
You’ll also plan some room in the budget contingency issues, because trust us, they will come up. No matter how much you plan, there will always be some issue that you didn’t plan on and will need extra money to fix. But if you’ve already set aside money in the contingency margin, you can rest easy.
Tip #3 - Know your Market
Do you really know how much you can sell your house for? This is where you need an experienced real estate agent who can advise you on neighborhood comps and provide data on recently sold homes, giving you a good idea of how much your home is worth. This can also help you determine how much money to put into that house before you try to sell it.
If you’re considering putting in an offer on your first investment property, or if you’re just curious about learning more about flipping a house in the Salt Lake area, give us a call! We’d love to talk to you more about your options and help you be successful in your efforts.