5 Rules for Successful House Flipping

5 Rules for Successful House Flipping

Sold House Shows Purchase Or Auction Of Home

Turn on your television and you’re likely to find several shows relating to house flipping. The shows often glamorize the process, showing exciting rehab projects and big profits. But, what these shows don’t often show is the really hard work and dedication it takes to make a successful flip, and the times that it doesn’t always work out as planned.

Regardless, house flipping can be a great way to build your real estate portfolio and see substantial return on your investment. But, you shouldn’t go into it blindly. Consider these 5 rules for successful house flipping:

No. 1: Never put all your money into one property. Sinking your last dime into a flip may seem like an adventure, but it just isn’t smart. Make sure you’ve got the savings or financing to complete the project before jumping in head first.

No. 2: Detach yourself from the property. If you aren’t living in this house, you don’t have to like the floors, but they should be something your target market will appreciate. You may love dark colors on the walls and metallic finishes but a neutral color palette can help you sell quickly. Detach yourself from the property and look at it objectively.

No. 3: Choose value over aesthetics. You don’t always have to choose the most expensive finishes or state-of-the-art appliances when flipping. Consider value over aesthetics. What is important to your target demographic?

No. 4: Keep trendy to a minimum. You need your flip to appeal to the widest pool of potential buyers. That means keeping trendy to a minimum and finishing your flip with touches that appeal to the masses. Think timeless elegance.

No. 5: Know your market. Just because you think every house should have wood floors and granite countertops doesn’t mean the market agrees. If you spend too much on the remodel, expecting to sell at a higher price, you will be disappointed. The market dictates a home price, not the upgrades you decide to install. Keep this in mind when strategizing.

Remember house flipping can be risky. Always do your research and plan, plan, plan. Speaking with a real estate professional in your area can be a great way to understand market trends and whether or not your particular area or neighborhood is a good candidate for your project.

Powered by HomeActions for Laura S. Rossinow, Broker, Keller Williams Realty, Newton, MA