How to Get Big Returns on Your Next House Flip
House flipping is an investing strategy that helps you make an enormous amount of money provided you know how to do it right. To ensure big returns, take into consideration the following tips:
• Calculate – House flipping involves numbers and so it is important to do the math. How much money do you need to successfully flip a house? You need to calculate up to the last dollar so that you will have an idea as to how much money you can make from flipping a house. The cost of house flipping includes the money you spent to buy the property, renovation cost including the materials and labor, tax, advertising, and the likes.
• Identify your target market – Who is your target market? As a house flipper, you have to know your target beforehand so that you can tailor your flip according to your market’s needs. Amie Yancey is an expert in the Las Vegas area and would tell you that if your target are families with children, then you should choose a house situated in an area with amenities like schools, hospitals, churches, market, shopping malls, and the likes. If your market are retirees, then you have to choose a property situated in an area that is away from the hustle and bustle of the city life.
• Renovate with buyers in mind – you shouldn’t let your emotions get in the way when flipping a house. Remember that you are flipping the house for your target market and not for your own use. One of the reasons why your profit is reduced is you tend to over renovate the property because you let your personal taste get in the way. You have to know what your potential buyers wants and incorporate them in your flip. Focus on the basics such as updating the bathroom and kitchen fixtures, improving the landscaping of the house, applying fresh paint, and the likes. You don’t need to add a Jacuzzi. It will eat a huge portion of your budget and it will add up to the asking price of the house. If your target market can’t afford the price, then you don’t necessarily need such kind of cosmetic update. Focus on the ones that will make the house appealing to your market without having to spend a lot.