Do you love flipping homes? If you’re ready to put in the work, there is certainly good money to be made.
Flipping (also called wholesale real estate investing) is a type of real estate investment strategy in which an investor purchases a property not for his own use, but with the intention of selling it for a profit.
How much it costs to flip a house will be different from project to project Most of the properties are older, historic homes (built in the 1920’s or earlier) and in need of lots of love.
Such homes lack many of the features and conveniences that modern buyers want. Some of these items can be quite obvious but others are much more subtle and take an experienced eye to see. Knowing about these items, and planning for them in your rehab budget, can make your project much more appealing when you put it on the market.
— Family living areas in older homes were not designed to accommodate big screen TV’s. Plan in your rehab where the big-screen TV will go. It may take moving walls, or it could even take building a family-room addition.
— When figuring out your rehab budget, be sure you include a plan to have enough outlets.
Cable and Wires
— Older houses simply were not wired for cable, the internet, or even phones. Develop a plan for your home to be wired for these items, especially as we move closer and closer to the internet of things.
Increase The Storage
— Older homes often lack closet space. America was just not as prosperous in the 1920’s as it is today. Be sure to look at all closets. If they are small, expand them, and if they do not exist, add them.
— Bathroom and closet space is often much more valuable then bedroom space. If you have money to spend (and you had better), spend it here. Bathroom suites are one thing that will make your house stand out from the rest.
— No one wants to go downstairs into a dark basement to do laundry. Nor do they want the washer/dryer standing out in the kitchen. Now is the time to move them and make a dedicated space for them.
— Allot a budget to fix the sewer line on the front end when dealing with older homes.
Save On Energy
— Homes built in the 1920’s were not built to be energy efficient. Keeping energy costs down is going to be more and more of a concern as buyers become more energy conscious.
Flipping homes is one great type of real investment that is not as easy as it looked on TV. Looking at these most important items beforehand will ensure success when rehabbing.