So for years now you’ve been an avid viewer of all the house flipping shows that are so popular on TV these days, and you’ve decided to give it a go yourself. Maybe you’ve already purchased a property with potential, are in the buying process or at least have chosen the one you’re going to roll with. So now you’re ready to get down to the nitty-gritty of what will ultimately have the most effect on your ROI, the renovation. The first step is to create a budget, easily done with some basic home improvement planning. The real challenge will be staying within that budget as you proceed. Here are some things to consider.
Research And Planning Are Key
Crunch the numbers. Figure out your budget down to the last penny. Factor in loan costs, necessary utilities, taxes, and ongoing maintenance for at least a year. Of course, you’ll have to consider material costs and any labor for jobs you decide to farm out.
Know your market and buyers. If you haven’t yet purchased a property, you’ll want to research what homes have been selling for in your area, and maybe ask some local realtors for advice. There are also plenty of resources online where you can read about real estate investing and local marketing trends. Consider what type of buyers will likely be looking to buy your property. Are they younger with families or older retirees? It makes a big difference in home selection and renovation priorities.
Make use of free planning tools and advice. Take advantage of all the resources available out there today when making your house flipping plans. Most large hardware and home improvement retailers have expert staff on hand to answer questions, and their websites normally offer tools such asmaterial listings and cost estimators, as well as useful tips and articles.
Other Tips For Staying On Your Renovation Budget
Choose builder-grade. When purchasing materials, focus on the builder-grade products. These will be the cheaper ones, and they are perfectly acceptable in most situations. But if you’re a house flipper in an upscale area, you might have to go for the more expensive materials.
Look for remnant, overstock, and discontinued materials. Always ask the store manager if they have any stock in the warehouse that they’re looking to dispose of because it’s been overstocked or discontinued. Also ask if they have any remnants or product that has been returned by customers. You can save a lot if you ask around. In fact, if you want to have a gym in your home, you can contact companies like Primo Fitness wholesale fitness equipment to find affordable gym equipment.
Hire moonlighters and students. You’ll probably have some renovation jobs that you don’t want to take on yourself, and some dirty work to be done that you don’t have the time or inclination to do. Skilled workers from construction companies are often willing to make some extra money on their own time, often at a lower rate than they make at their regular job. And when school’s out in the summer, there will be lots of students looking for some temporary work, perfect for cleanup and other manual labor chores.
House flipping can be a very lucrative business, if you plan your renovation completely and take advantage of any method to cut costs.