You want to make your flip as appealing as possible to potential buyers, but over-improvements and ill-conceived changes could hurt your bottom line, or even jeopardize the sale of your flip. Consider these scenarios before your next project. Uber-Upgraded Kitchens There are upgrades, and then there are upgrades. The latter isn’t always a great thing. For example, if you invest $80,000 on a super high-end kitchen in a home where the neighborhood comps are $200,000 you may not recoup your investment, and your kitchen will eat into your bottom line. Also, if you do an uber upgrade in your kitchen
If you're thinking about diving into house-flipping, we have a word of caution for you: Don't do it unless you've done your homework. Here's what we often see go wrong with first-time flippers. What if You Try to Flip a House Without Understanding the Market? Flipping a house without doing your homework can be disastrous. Here's why: If you buy a house without understanding the real estate market around it, you won't know if you're really getting a good deal. In order to make a solid profit, you'll need to buy the property below market value, minus the cost of
If you've been involved in investing for a while - or if you've been doing plenty of research on flipping properties to make some cash - you've heard of the 70 percent rule. But what is it, and how do you figure out how much it is? What is the 70% Rule in Flipping Houses? The 70 percent rule says that an investor should pay 70 percent of a property's after-repair value, or ARV, minus the repairs necessary. 70% Rule: Examples So let's say a home's ARV is $200,000 and it needs $50,000 in repairs and upgrades to make it
House flipping is all about fixing and reselling a house fast. So, the idea of a complete bathroom remodel is daunting. Should you do it? You may assume that a full bathroom remodel will sell the house faster, but realtors report that it's not usually the case. Assuming the bathroom is functional, what efforts really result in a return on the investment when it comes to bathrooms? Remember, when flipping houses, time is also an important factor! The truth is that relatively inexpensive changes to bathrooms are usually enough to help sell that property and bring a return on your
Many rookie real estate investors make the mistake of overpricing their properties when all the work is done. The bottom line: If you want a successful listing that produces multiple offers, you must price your property correctly. Additionally, an overpriced investment property will sit on the market too long and tie up your money. The tried and true method for pricing your flips correctly is to find reliable comps in your property's neighborhood--and the best way to do that is to work with a Realtor(R). You can also check the market yourself periodically, while you're fixing up the property.
With TV shows boosting the popularity of house-flipping as a business, people who ordinarily wouldn’t have ventured into real estate investment territory are jumping on the bandwagon. But if you’ve been in the business for a while, you know this isn’t a get-rich-quick scenario. You know that you still need to find the best deals, but the market is getting crowded with investors who aren’t… well, aren’t as invested as you are. So what do you do? Finding Turn-Key Homes in a Seller’s Market Like most real estate investors, you may find that Atlanta flips are hard to come by.
Popcorn ceilings are -- thankfully -- a fad of the past. Unfortunately, they’re still in many older homes, and homebuyers don’t want anything to do with them. If you’re thinking of flipping a house and it has popcorn ceilings, you’ll be happy to know there are quite a few simple tricks to remove them and start fresh. Depending on the home's age, you’ll want to do a lead and asbestos check before you make your decision to remove it. If the house was built before 1980, the possibility that asbestos will show up in testing is high, so you’ll have to call in the
If you recently purchased a home as-is, you may be just finding out that the previous owners were hoarders. If your deal of a lifetime includes trash (or worse) from floor to ceiling, you’re probably wondering what plan of action you should take. What to Do With a "Hoarder" House If you’ve assessed the home and think there may be some buried treasure—hey, it’s been known to happen—it may be a good idea to hire a cleaning service that you’ve depended on in the past. Having a contractor you trust (especially if you think there may be valuables) will be