The Makings of a Successful Flipping Project
With the limited supply of newly constructed homes and developments, high demand on entry-level family homes and a once again favorable financial environment for flipping houses have become a promising endeavor with better than average returns. However, any flip can just as easily turn into a flop with several risk factors involved.
Consider these key factors to help you do your homework before embarking on a flip to manage the risks and reap the rewards.
A thorough assessment of the physical condition of the rehab property must be accurately done, stresses naturaconsultingllc.com. As much as possible, find a property that only requires cosmetic improvements like a new paint job and updated cabinetry and fixtures. Check if the property has a solid foundation, good structural support, a functional layout, and hardwood floors. To ensure an accurate assessment and avoid costly surprises, consider getting a property condition report.
Location, Neighborhood and Features
A sizable chunk of a property’s value will ultimately depend on its location. The general property values of the city its located plus other considerations like proximity with positive and negative features of its neighborhood. Positive features such as a good school, a quiet and family-friendly location, and proximity to parks, recreational centers and shops add to the value of the house.
The ultimate success of your flipping project does not depend on how high you sell it but on how low you can get it. Get the best purchase price possible, one that allows for the necessary improvements the property will require attracting buyers. Always remember that you’re coming in as an investor and don’t idealize a property as a homeowner would. If the asking price for the property is not right or where it needs to be, learn to walk away.
By considering these key factors, you will be able to manage the risks in a flipping project and increase the likelihood of turning some hefty profit.