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How to Flip a House

Over the past year, house flipping has been under the spotlight. Watching a single episode of any house-flipping reality show will make its appeal clear. As a bonus, it’s incredibly lucrative. If house flipping has caught your interest, we have a few tips for you.

What is it?

House flipping is the act of buying a house to resell it fast. This period is usually between a few months to a year. There are many ways of approaching house-flipping, but in this article, we’ll focus on “buying a house whose value can be increased with repairs and refurbishment hence fetching a sizable profit on the sale.”

Is it Worth Investing in?

On TV, house flipping looks like a cakewalk, but it’s a task you need to handle with care. Done well, it’s an excellent investment. If not, it could be a complete disaster and burn a deep hole in your pocket. With the time and effort it takes, you want to make sure it’ll be worth it.

This brings us to the next segment, flipping houses in 4 Steps:

1. Use Cash Flipping houses takes money and time. Using cash to finance the project can save you the stress that comes with debt, like interest fees and the desperation to sell and regain the money, which could lead to cuts in the profit.

Markets and property upkeep can sometimes be unexpected and have costs you didn’t foresee. Operating on a loan can convert these setbacks into financial expenses that can eat into your profits.

2. What is Your Market?

Knowing your market is crucial. It can help you identify the correct cost of the property you’re buying. It’ll also help you foresee the potential value of the property. Without knowing that, the entire project is futile. Sometimes it helps to work with a real estate agent who knows the neighborhood. It will save you time and money.

3. Create a Budget

Know how much you want to spend so you don’t find yourself in a tight spot. Make sure you have enough money put aside for surprise repairs and other unforeseen troubles. Keep track of all the expenditure you may incur, like inspection costs, and ensure you can bear it.

4. Invest Smart

Decide what and how much you want to spend on things. Many times, people spend most of their budget on massive renovations of kitchens and bathrooms and splurge on items like custom cabinets. These, while enjoyable, are unnecessary costs as you will be able to remake only up to 70% of it. Instead, spend on polishing the existing cabinets and counters. Remember, the less you spend, the more likelihood of making it all back on sale.

Takeaway

To sum up, flipping a house can be a challenging task, but done right, you will make a lot of money. The key to this is to use cash, stay in your budget, know your market, and chose investments well. Most importantly, you’ve got to sell fast.

So, what are you waiting for?


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