4. Make Smart Renovations
Dreams of shining hardwood floors, trendy light fixtures, and great kitchens with professional-grade stoves may easily spiral out of control. That’s why it’s critical to plan your budget ahead of time and then ensure that your renovations stay on track and really increase the value of your house.
Don’t forget that major upgrades, such as kitchens and bathrooms, can make or break your flip. Take, for example, the kitchen. The average cost of a significant kitchen remodel, according to the 2020 Cost vs. Value report, is about $68,500. 2 The average amount recovered from such expense is only around $40,000. 3 When you’re flipping a house, you don’t want to see that kind of ROI.
If you want to sell your house for $220,000, don’t spend $60,000 on bespoke cabinetry, high-end finishes, and that dream kitchen island! Consider a wiser renovation that focuses on repainting existing cabinets, installing granite countertops, and updating appliances. You’ll pay less and have a much better chance of recouping your costs when you sale the house.
While you may spend in a few major modifications on a flip, don’t underestimate the significance of minor changes. A fresh coat of paint, new hardware, and new landscaping can all make a big difference!
5. Seek the Advice of a Local Real Estate Expert
Is it possible to make money by flipping houses? You most certainly can if done correctly! Flipped homes sold for an all-time high median price of $267,000 in the second quarter of 2021, with a gross profit of about $67,000. 4
Remember that the gross profit does not include the cost of repairs and renovations. However, if you’re able to flip with cash and keep within your renovation budget, it’s entirely possible to make a good return on your investment.
The secret to successfully flipping a property is to do it with cash, make a wise investment in the sort of house you buy, choose repairs within your budget, and sell it promptly. Having a real estate professional on your team makes all of this possible!
A qualified real estate agent can provide the market expertise and practical counsel you need to make a wise investment, whether you’re buying a house to live in for years or to flip in six months.
