If you’re looking to make extra income, then we’re here to show you flipping how. Read on to find out ways to maximize your profits with the help of foreclosed home.
What does house flipping mean?
When someone says they ‘flip houses’, it simply means they buy and resell houses for a profit. Usually, to gain a profit, the buyer will complete a few renovations within the property before selling it on. Those looking for a cheap house to start with could apply for foreclosure loans, grab a bargain property at auction, and significantly boost their profits.
How to flip houses successfully
If you’ve got a small pot of cash to play with or have been saving for your own home and are getting a little impatient, flipping is a great way to invest.
Anyone can buy a cheap house, paint it and try to resell it, but if you want to flip houses successfully, here are a few tips to live by:
Do your research
To succeed at flipping houses, it’s important to keep a close eye on the local market. If you find a property that costs 100k to flip but shortly after realize that other houses in the area are pretty much going for the same, you’ll have lost the chance to make a profit.
Make sure to see what other houses sell for in the area. It’s also worth researching the features newly sold properties have so that you can make plans to renovate the property even before you buy it.
Don’t get attached
If you like the look of the property and can start imagining yourself in it, it’s not the right house to choose. Whether it’s before you buy or after renovations have taken place, it’s important to not get attached. The property was always a project, and you’re here to make a profit. Flipping houses is a business, and it’s an unsuccessful business if you get attached to each property.
Try before you buy
Visiting the property and the local area before putting in an offer will give you a good idea of your return on investment. If the property is located near good transport links or schools, you’ve got yourself a hot ticket. If the local area is a little run down and further afield, chances are you’ll achieve much less of a profit.
Cost up repairs
When you visit the property, you’ll be able to gauge a better idea as to how much will need to be done. If you’ve flipped a house before or have done repairs and renovations in your own home, you’ll know from experience how much things cost. If not, look to get a few quotes together to understand how much everything will cost. That way, you’ll know how much to borrow if you’re applying for a loan or how much you’re willing to bid on the property.
Once you’ve done all your research and calculations, you’re in a good position to make a decision about whether or not to buy your first property and sell it for a profit.