House flipping can be a profitable endeavor. It can also seem like a really easy way to make extra money.
According to television shows like “Flip This House”, you simply buy a distressed property, make some simple improvements, and then sell it at a massive profit. Unfortunately, house flipping doesn’t always work out that way. Many inexperienced home flippers end up losing money on their investments and they never even know why.
In this blog post we’ll talk about the house flipping home improvements you can make to ensure that you earn a profit on your next flip.
The first step you’ll want to take when flipping a house you own is to make sure that the house is in good shape. By this, I mean that you’ll want to make sure the roof is not leaking, the pipes are in good condition, and that the basement is dry. You’ll also want to make sure that the house is safe, up to date, and up to code.
Many first time home flippers make the mistake of spending their entire budget on cosmetic changes. These investors skip the functional house flipping home improvements and go right to updating kitchens and bathrooms.
Unfortunately, most home buyers aren’t going to care about the new kitchen if the roof is leaking. If you’ve spent your entire budget already, you won’t have any money left to fix the roof before attempting to sell.
Once your investment is in good working order, you’ll want to go ahead and beautify your home. This being said, you’ll want to make sure the market can support all of your upgrades.
For instance, you don’t want to spend $100,000 on making improvements to a home that is in a $75,000 neighborhood. Make sure you know your market and determine how much each improvement will add to your bottom line before you start on it.
One of the best ways to make a profit on house flipping is to go after the low-hanging fruit. By this I mean you’ll want to make the easiest low-cost improvements you can make first.
Small home improvements like painting walls and improving the landscaping can provide you with a lot more value than some of the larger ones. Also, if you end up taking a loss on the property, you won’t lose out as much because your costs weren’t as high.
Easy House Flipping Home Improvements Everyone Should Make
Painting – As we mentioned earlier, painting is quick and inexpensive and can really change the appearance of a house. Paint any interior walls that look old or out-of-date.
Landscaping – Take down and trees or bushes that are in bad shape and prune any that take away from the appearance of the lawn or house.
Lighting – If you’ll be showing the house at night, you’ll want to make sure you have plenty of interior and exterior lights. A bright house always looks larger and more inviting and for the cost of a few lights, you may end up with a much quicker sale.
House flipping can be fun and profitable. All you need is the right house, the right improvements, and the right buyer. Contact us today and we’ll help find you the right house for you!