The “Right ” Flip
When you ask what makes a flip-worthy house, there are some things that obviously come to your mind right away. Finances, for example, are at the top of the list. Experts agree that a flipped house needs to make at least 10 to 30 percent profit. You must buy at the right price and stay with your budget when you remodel. Another is the location. Clearly, you want to choose a house where the whole neighborhood is not in need of rehab as well.
This can easily be done if you find the “right” house. But what exactly about a property makes it the right one?
The list is not quite as ominous as you would think. There are few simple “must haves” that most professionals agree upon.
- The age of the home. Homes built prior to 1978 may involve a fair bit of cash outlay to bring plumbing up to code. Also, the older the home less likely it is to be set up for the conveniences that newer homes provide such as cable readiness for television and internet connection. While they seem like simple fixes they will add to your rehab costs.
- Start with the attic and the basement. Costly structural or foundation problems can quickly eat up any chance at a profit unless you have accounted for them in the beginning. All systems such as the heater and air conditioner must also be considered as well. So, check them out before you make an offer.
- The number of bedrooms and bathrooms. Don’t buy a one-bedroom house to flip, because most home buyers are looking for two bedrooms and more. The same is true of bathrooms. This is especially true when addressing the need for a master suite with a private bathroom. Smaller homes without these amenities will minimize the demand for resale. Another flip-worthy must is a functional floor plan. Translation: You shouldn’t have to go through a bedroom to get to the kitchen.
- The kitchen and dining rooms are central in the minds of many buyers. Make sure that the floor plan will allow for expansion and dream big. Kitchens, even with eat in space, can make or break the resale of a house. Make sure these spaces are versatile and useful. They are the spaces that the client will most likely personalize first because they are used extensively.
- The finishing touches matters. When looking to buy, hardwood floors are a huge plus. Refinishing them will cost you a third of the cost of replacing them. D. When considering what works, you can or will do yourself versus hiring a professional, keep in mind that being truthful with yourself will reduce the addition of costs later. Don’t be afraid to peek under that carpet to see what magic (or deflating dose of reality) lies beneath. Use this same logic when looking at the home’s existing finishes. Can dated wallpaper be removed? Will a new coat of paint be a huge improvement? Neutral choices are better, as they allow the home to appeal to a larger pool of buyers.
These are just a few of the tips that are recommended to keep in mind when looking for potential bargains homes.