15 Ways To Make A BIG Profit Flipping Houses

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15 Ways To Make A BIG Profit Flipping Houses

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Flipping houses can get quite risky if you don’t plan it well. It’s definitely not an easy job buying a cheap property, renovating it and then putting it on the market. You need to know which improvements you need to focus on and which ones are only for your own pleasure if you want to make a sizable profit.

Making a successful flip requires time, knowledge, proper planning, and an eye for details. If you decided on taking this step, you need to make a list of priorities and stick to it. If done right, it can turn out to be the greatest investment you ever made. Here are some basic starting points you need to keep in mind when flipping a soon-to-be home:

  1. Buy at a fair price – Try not to end up overpaying for a property. Your instant profit will go down the drain and it will be impossible to gain back, especially if you’re working on a tight budget. Before deciding, research the local property prices, so you can buy the right home the moment it becomes available.
  2. Purchase the worst house in the best neighborhood – Look out for a house that you can get for a lower price in a very desirable area. Then, make a list of things that can be easily updated, such as crazy paint colors, old carpets, and dirty toilets.
  3. Buy a house with a good foundation – One of the most important things you need to look after is that the house already has a strong foundation. If it doesn’t, you might be obliged to invest more money than you originally planned. Check for any cracks on the exterior walls, a leaning chimney, or cracks in the bricks. Also, if you can get a full structural survey and come with a trusted construction expert, it’s even better.
  4. Plan your renovation carefully – Planning is by far the most important stage when you’re flipping a house. If you have a team of trusted tradespeople, you can make a timeline that goes hand in hand with your budget. First, you start with the building work and then move on to the interiors.
  5. Keep in mind the potential profit – You have to be careful and precisely calculate what your profit margin on any flip is going to be, and weight it against your costs. As a general rule, property developers use a minimum of 20% for the return of investment when assessing their projects.
  6. Know which improvements to make – It’s so easy to cross the line between doing enough and going too far. If you want to incorporate new smart technology, you have to pick it wisely. Expensive integrated systems, such as smart lighting or Alexa, are less practical than other extras that are vital. Before jumping on smart technology, make sure you have installed enough power points and USB charging points, which are cheaper to install and more necessary.
  7. Don’t change too much – If you plan on changing too much, you might end up with a huge repair project on your hands that adds extra cost.
  8. Knock down a wall – As a general rule, buyers are way more impressed with how much usable living space they have, rather than how many rooms the house has. By knocking down a wall, you will create more light and open-plan space, and that’s what makes a valuable home. But make sure not to overdo it and get rid of all the walls in the living room.
  9. Don’t go for unnecessary improvements – Over improving the conditions on the property won’t give you the desired return you wish for. It’s better if you treat the project as a business, and not your dream home renovation. Yes, you should upgrade the boiler, and electrical wiring, which are essential for any home, but only if they’re in a poor condition. Otherwise, save your money.
  10. Don’t leave any rooms out – If you want to make money out of your freshly-purchased property, make sure the home has a consistent design in all the rooms. Each and every bathroom should receive a bit of update, even if it’s painting the walls or replacing some tiles, replacing the taps or just adding fresh toiletries.
  11. Add some high-end features – By adding a few high-end features, you raise the value of the home. When you update the kitchen, add a wall-mounted range hood above the hob, or hang interesting lights above a kitchen island. It will make the difference!
  12. Careful with your paintwork – Unless you already have a professional painter in mind, you’ll need to be careful with the prep work. There are many DIY hacks to help you out with this, including lining your paint tray with a plastic bag, before you pour in the paint. After you’re finished, you just remove the bag and you won’t have to scrub the tray.
  13. Revamp the flooring – A nice floor can sell a room, and it doesn’t even have to be very expensive!
  14. Update the lightning – Another important touch to your home decor is the lighting. Taking care of the lighting can take your project to the next level, with minimal time and money.
  15. Upgrade the kitchen and the bathroom – There’s research from Tap Warehouse that shows how the right kitchen and bathroom changes can increase the value of your house by 10%. After all, it’s worth spending time and effort into improving these spaces and making them as comfortable as possible, without blowing the budget.

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