When the real estate market is hot, everyone tries to get their foot in the race. But if you’re not ready to sell your own home, can you still participate?
Buying and flipping a house can be a way to add a new stream of income and can be quite lucrative if done correctly. While some people will simply invest in a property and hire outside help to renovate the house, it’s still possible to flip a house on your own if you know what you’re getting into and have the right resources.
The Right Skills and Knowledge
The most important thing is that you have the right skills and knowledge to take on such a big task. While there’s a chance you already have the know-how and technical skills to gut a house and make serious renovations, it might be a good opportunity to start preparing your contractor’s license with contractor training center.
You can get licensed in your state, and you’ll be allowed to do bigger projects with more credibility, plus you’ll be more confident with the skills and knowledge you need.
Flexible Timeline
If you’re running on a strict timeline to get your house flipped and ready to sell by a certain date, you might be setting yourself up for failure. It’s important to have flexibility in your timeline, as house projects notoriously run longer than anticipated.
When estimating completion, always add in some buffer time for extensions, so you’re not stressed at the end trying to finish everything on a tight timeline.
A Hot Market
If the real estate market isn’t performing well, you might struggle to get a good buyer for your flipped home. This is what you want to avoid the most, as not being able to sell keeps you from making a profit on the flip and only adds to your monthly bills when you’re stuck paying the mortgage longer than anticipated.
Wait for a hot market when buyers are looking to buy quickly, and you’re more likely to sell your flip in a short time on the market.
Adequate Budget
Flipping a house is a major financial undertaking, and if you’re not sure if you can afford it, chances are you likely can’t. You should be confident in your financial ability to fund the budget without putting extra strain on your financial situation.
Quick, Affordable Improvements
The kind of house you want to flip is one with quick and relatively affordable improvements. You don’t want to invest in a house that needs to be gutted and will require several months to finish; you want one that just needs a few quick fixes to make a big impact.
An Experienced Realtor
The right realtorwill be key to finding a good buyer for your fixer-upper. Find one with experience in the neighborhood and an excellent track record. Getting references from loved ones is always a good place to start.
To Flip or Not to Flip?
If you’re considering flipping a house on your own, know that you’re walking into a big project time-wise, money-wise, and skill-wise.
Making sure you have what it takes before you make a big property purchase can ensure the best result.
