Flipping your home in Nanaimo is a little different from the typical resale home in our market.
One of the main reasons for this is when you flip a home you usually can use a 'blank slate' approach and make home renovations that will make it easier to sell your investment with an eye toward the way the real estate market is in real time.The process of flipping a home is quite simple, but this type of real estate investing can be fraught with risks, if you are not careful. Here are the basic steps that savvy real estate home flippers use - before making an offer on a house:
1. Locate a house - or condominium or apartment - that is undervalued relative to the rest of the homes in the immediate area. A home might be undervalued because it is a foreclosure or a distress sale, an estate sale, or one that has simply fallen into disrepair due to neglect or a shortage of cash on the part of the existing home owner.
2. Conservatively estimate the repairs and renovations needed on the house. This is the area where home flippers - even those that are experienced with several flips under their belt - can make very expensive mistakes. Have your trusted contractor and home inspector thoroughly investigate the house and be sure to conservatively and very realistically develop a home renovation budget, leaving plenty of margin for error if you underestimate your project or if you discover additional things that need to be done after you have begun your home flipping work.
3. Realistically calculate the sales price that you can sell - or flip - the house for when all of the repairs and renovations are done. Remember, the three renovations that can give you the best ROI are bathroom updating, kitchen updating, and adding extra space to the house.
After that, crunch the numbers to see what type of profit you will have on your home flipping project. Make sure to include selling costs such as house maintenance while the home is on the market, realtor fees and other normal closing costs.
Remember that there is always a high level of risk involved in flipping a home, so if the profit that you calculate isn't that great, you can always step back and look for another home to flip in Nanaimo.