Nickel City Funding, Inc. in Orchard Park, NY is dedicated to helping people achieve the dream of gaining wealth through the real estate market. One way many investors accomplish their goals is through fixing and flipping houses. Today, we are here to share some key tips from the experts on fix and flips.
Tip 1: Education is Key to Fixing and Flipping
Taking real estate classes from proven experts is important whether you are new to flipping houses, or an experienced professional. It is always smart to stay on top of the latest trends and terms. Find the best books, courses, and mentors that you can. Courses you take should focus on auctions, working with construction contractors, finding your buyer market, and finding the right house to flip.
Tip 2: Find Up and Coming Neighborhoods
When you are searching for the right property to flip, it is important to find something that is not too expensive. Up and coming neighborhoods are usually ideal targets for fix and flip properties. Not only are the housing costs more reasonable, but the area infrastructure is usually being developed or upgraded for the anticipated population boom.
Tip 3: Understand Your Full Costs
Many people do not consider the full cost of fixing and flipping a home. Will you need to pay a mortgage, HOA fees, taxes, or insurance while upgrading? There are also costs in purchasing, holding, financing, selling, and renovating the property. Be sure to build a robust budgeting tool.
Tip 4: Due Diligence
Properties that people purchase for fix and flip are usually old and may have an extensive history to research. Not only do you need to research the property title, you also need to research code compliance. You do not want to take on too large of a project and discover an expensive problem mid-rehab. Check for issues such as lead and asbestos. You should have your contractor inspect the house, and do not hesitate to get a second inspection on top of that.
Tip 5: Price the Home Carefully
Find a home at the right price and aim to sell it at the right price. You do not want to list the home at too high of a value. In addition, before you purchase and begin repairs, you should assess the After Repair Value (ARV) of the home and then use formulas deduct construction, selling, and closing costs. In addition, some professionals suggest listing the home at just a slightly lower value to entice buyers and speed up the process.
Nickel City Funding in Orchard Park, NY is here to help investors accomplish their goals in fixing and flipping local properties. Contact our offices today for more information.