You have probably seen those shows or heard people talk about flipping homes. It seems so easy, you just purchase a run-down home, fix it up a bit and then resell it for a profit. Unfortunately, these flips don’t always go as planned. These are some tips to help you with historic remodeling, so you can make money on your flip.
Choosing the Right Property
The key to making money on a flip is to choose the right property. Therefore, your first step is to compare the purchase prices of homes you are interested in flipping with the market sale price for similar updated homes in the area. Be sure that the home is priced well below other sales prices. This ensures that you can put work into the house without pricing yourself out of the market.
Evaluating the Work That Needs Done
Your next step is evaluating the work that needs to be done on the property. Effective, profitable historic remodeling involves quickly identifying major costs, such as plumbing, electrical or foundation issues. You also need to evaluate paint, damage from floods or leaks, windows and doors to determine any necessary replacements or upgrades. Therefore, always get an inspection.
You need to know what things cost so you are able to quickly add up what each renovation will cost you. You may be able to do some of the work yourself, but when you hire your contractor, add in labor costs. Stay current on material prices and stay aware of the carrying costs.
Discernment About Your Upgrades
Make the home attractive to other buyers, but don’t create your ideal home. Identify areas that will give you the most bang for your renovation bucks, such as bathrooms, kitchens and master suites. In addition, don’t have to use high-end materials unless you are selling a multimillion-dollar home. Consult with local realtors about what makes a home sell in your area.
The key to making money on historic remodeling is keeping your costs low. Work with highly qualified professionals at each stage of your project.