House Flipping Tip

By
Real Estate Agent with Johnson & Johnson Real Estate Group DRE #01833715

The goal of fixing and flipping a house is not just to buy a property and sell it, but actually make money in the process. To succeed, there’s one thing you must do: Maintain your margins.

Renovating homes is no easy task, and we all get the urge to splurge on certain upgrades we believe will pay off in the end, though that’s not always the case. It’s important to do just the right amount of work to make a house appeal to potential buyers without breaking the bank. For example, you can spend $2,000 to spruce up the front yard of a fix and flip property, or you can go overboard and spend $20,000. Finding the right balance is key.

The best way to gauge just how far a renovation should go is by researching homes that have recently sold in the area as well as homes that are currently for sale. Additionally, keep in mind that taste greatly varies by location, so make sure you do your homework.

By closely monitoring expenses and maintaining profit margins, your next fix and flip project will be a success...

 

Justin Johnson

Real Estate Advisor

1-888-519-0280

500 Washington Blvd

Roseville CA 95678

 

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Comments (4)

Sharon Lord
Maracay Homes - Peoria, AZ
New Home Advisor

Justin - Well said!  Flippers also need to budget for the unknown - i.e. what if when the light fixtures are replaced, it's discovered there's a giant roof leak in the attic above...?  Be ready for ANYTHING...!

Jan 23, 2013 03:18 AM
Justin Johnson
Johnson & Johnson Real Estate Group - Roseville, CA
I will always answer your call.

Yes thanks for adding that. You must budget for the unknown. Smaller or 1st time investors may want to also stick to propertie say 95 or newer. In our market that very easy to do. I would imagine in other ares not so easy. The idea is the same newer property less potential issues usually...

 

Jan 23, 2013 03:23 AM
Fred Hernden, CMI
Superior Home Inspections - Greater Albuquerque Area - Albuquerque, NM
Albuquerque area Master Inspector

Also, if you make repairs/upgrades... do them right! I can't tell you how many inspections I have done on "flips" that the stuff wasn't done correctly. Just because it looks good doesn't mean it is good. It will always come back to you at inspection time.

Jan 23, 2013 03:24 AM
Justin Johnson
Johnson & Johnson Real Estate Group - Roseville, CA
I will always answer your call.

Well Said Fred thsanks.. Poor work is a problem here also..Cheap investors and poor contractors equals problems!

Jan 23, 2013 03:28 AM