Starter Tips for Getting into House Flipping
Flipping a house can be a great project to take on if you’re looking to generate some additional income. Not only that, but planning and executing a flip can be quite a fun experience for you and any others involved. In this blog, we’re going to guide you through some important tips, tricks and best practices to make note of along the way.
Please keep in mind that flipping a house will take time, money and effort. It’s a significant responsibility, so make sure that you carefully assess whether or not you can fully commit to the process.
In the planning phase, you’re going to want to keep an open mind as to what is available. Keep an eye out for terms like “fixer-upper”, “priced to sell” and “as-is condition”, as those are the ones that could use the most love. In fact, we would recommend looking at those first, as they are usually cheaper and can likely give you a good return on investment from your renovations. If you’re looking at different neighbourhoods, try to choose one with plans for outward expansion, as the value of your property could rise.
You’re going to want to make sure to contact the experts. Hire an inspector to give you a rundown of what needs to be done, and create a “to-do” list of sorts. Consult a qualified real estate agent and inform them of your goals so that your needs can be met at every stage of the process. Check for any energy inefficiencies that can be fixed with an upgrade.
When you’re creating a budget, you’re going to want to be very conservative with your spendings. Make sure to leave a bit of buffer room for any unforeseen expenses or repairs that may need to be done along the way. Consider taking on this task with friends, family or others who could lend a helping hand for part of the profit in return. Also consider reaching out to a contractor or developer to do most of your large-scale work, as they will sometimes give you a discount in return for a guaranteed source of revenue.
Each house is different, which is why it’s important to create a list of priorities and order of operations. Which rooms need renovating first? Are there any appliances that should be replaced before winter time? Also consider that you’ll need to furnish the house in order to sell, so remember to keep a list of anything that comes to mind along the way in terms of decor.
Remember that you’re looking to buy one of the cheaper houses available. It’s crucial to avoid spending too much on a property you’re looking to flip, as that can be an easy way to lose out on significant profit. Also remember that a lot of profit can be gained or lost during the negotiation stage.
If possible, try to avoid taking your time with planning and execution. Remember to be deadline-focused and intentional with your decision making. The real estate market can shift suddenly and drastically, so you want to seal the deal before you face any potential loss in your profit margins. On the flip side, though, don’t rush with your decision making. Have patience. Don’t buy the first house that sticks out to you, and consider many offers when it’s time to sell.
If you have any further questions about flipping houses, feel free to reach out and contact us! We have plenty of experience with the Ottawa real estate market, and a vast network of experienced professionals who can help you achieve your goals, including inspections and more!
Lisa Fitzpatrick ABR, SRS
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