You might be going into the world of house flipping with a sense of cautious optimism, but also a sense of dread that you might be getting in way over your head. Do not fear! There are a few tips and tricks you can use in your next house flipping project that should help you avoid the pitfalls of house flipping.
1. Pick the Right Remodeling Contractor
DO: Go with a contractor you trust!
When you hire a contractor for house flipping, don’t go with someone who hasn’t proven their trustworthiness. Work with people who have a strong reputation both in the community and for their work! They should be communicative, easy to get a hold of and come with a long list of references.
DON’T: Work with a Fly-By-Night!
It may seem like an easy way to save yourself a chunk of the profits by going with the lowest-priced company. These crews might offer a price that seems too good to be true, and that’s usually because it is! Work crews without a good reputation will often promise rock bottom prices but cut corners on supply, manpower, or flat-out steal from you.
2. Double Check Everything on the Property (New & Old)
DO: Check all your boxes!
The rule of thumb with a renovation job, especially with an older property, is just because it LOOKS like it works, doesn’t mean it WORKS. Flips and foreclosures can come with a bevy of hidden problems, so it’s in your best interest to do the extra legwork and make sure everything is up and running!
DON’T: Leave a Cranny Unchecked!
Speaking of hidden problems, you never know what could be lurking in a flip. A lot of flippers get sucked into the temptation to spend all their time and money on the aesthetic portion of the home. Meanwhile, leaky pipes, faulty wiring, and moldy floors can be hiding all over the place. If you don’t do your due diligence it can cost you!
3. Pay Attention to the Design Choices
DO: Really Spruce Up the Place!
One of the most important parts of flipping a property is paying attention to the little details. A new coat of paint updates to the molding, and new window treatments can really make the place shine! You might think it’s dressing the place up, but buyers can tell when you took the extra care.
DON’T: JUST Spruce it Up
However, what you don’t want to do is the flip equivalent of putting lipstick on a pig. The little details are a great addition, but they definitely won’t fix a bad flip. If you don’t put in good work, no amount of small details will net you a buyer. And if it does, when something goes wrong, you’re suddenly in a deep hole.
4. Start with a Sound Structure
DO: Mind Your Structural Work!
One of the things that often gets overlooked when flipping a house is the structure. From the foundation to the walls to the roof, inexperienced flippers might not even know what to look for. It’s why you hire a company like Maintenance KC because we know where problems might be hiding and how to help.
DON’T: Cheap Out
You don’t just want to fix up what you can see, you want to make sure you have a good foundation to create that new aesthetic. We don’t just mean updating from vinyl to hardwood or putting new shingles on the roof. We mean really testing the integrity of the bones of the home – is the ceiling sound, are the floorboards sturdy, is everything up to code, etc.
5. Respect the Property You Are Flipping
DO: Treat it Like Home
A flip property isn’t just an investment, when you’re renovating it’s like a second home. As such, you have to treat it with the same care and time you would treat your own home while you’re renovating it.
DON’T: Leave it a Mess
Everyone has heard a flip horror story before. It goes a little something like this: renovations are done, buyers put in an offer sight unseen, they go for a walkthrough, and the construction mess is left behind! Snack wrappers, empty drinks, broken sheetrock, sawdust, the list goes on. Don’t be THAT house flipper. Take some pride in your work, and clean up after yourself.
Home Remodeling at Its Finest
Flipping houses can be one of the most lucrative operations if you play your cards right. The continuous cycle of purchasing low-value properties, updating and renovating them, and selling them to homeowners for a profit can be a great source of income. You can simultaneously build up investment properties while also providing a needed influx of “products in a market”.
Work with a Remodeling Contractor on Your Next House Flip
However, it isn’t exactly a science and definitely isn’t for the faint of heart. If you don’t know how to do the renovations yourself or don’t have your own crew, you’ll be looking at steep costs to hire everything out. If you choose to do the work yourself, then just make sure that everything is up to code – inspectors, real estate agents, and potential buyers will all be watching.
Either way, you’re on the hook for the labor costs, the supply costs, and if anything goes wrong it’s your bank account on the line. Even if you do everything right, have everything fall perfectly into place, and pass inspection on time and under budget, the second the market catches a case of the sniffles you’re left sitting on a goose egg.
So why wade deeper into the choppy waters of house flipping without being properly equipped and with a lifeline you can trust! Go in with a partner you can count on, like Maintenance KC! We offer a full suite of contracting and renovation services at a price your budget and your profit margins will appreciate. Maintenance KC comes fully equipped to help you make the flip, whether it’s a light update to a rental property or a full teardown renovation. We have the services to help meet your needs and make your property the most appealing one on the block!