Flip or Flop: 5 Ways To Become A Solid Real Estate Investor
Categories: Chattanooga Market Conditions, Chattanooga Real Estate Investing, First Time Buyers, For Home Buyers
“Flipping Houses,” the new nickname for Real Estate Investing, has spread like wildfire over the nation. Before the market took a drastic downturn in most areas, and a slight downturn here in the Chattanooga market, pretty much anyone could jump on the house flipping bandwagon and make a good chunk of change. Now with the new market conditions, it is important to have a strategy in place or you could lose your shirt!
Following these 5 simple steps can make your next “Flip” a profitable one…
1. Know The Market! If you know what homes are selling for in the area, it’s easy to pick out a good deal from a bad one. It is important to what’s sold and what hasn’t and why. Gaining access to accurate information about the details in the homes that have sold is key. Finding a Realtor to represent you in your search can give you the access you need to the comparable home sales and keep your finger on the pulse of the market in your area.
2. Get an Inspection! A reputable home inspector can be priceless when buying investment properties. While no home inspector is perfect, they are trained to look for red flags in a home, and are up to date on the current building codes in the area, which most people are unaware of. Missing these potential issues can costs you thousands, so spending a few hundred dollars on an inspector makes dollars & sense!
3. Set a Budget. A realistic budget is key. Leave room for the unexpected to come up, because it will! Giving your budget that extra wiggle room can save your profit in the end. Educating yourself with basic costs of products needed to restore a home can make this process easier. Also finding reputable and dependable contractors can spare you from the headache of trying to do it all on your own. Hiring work out may cost more up front, but it can save you time and money in the end.
4. Renovate it right. Don’t skimp on the renovation, your potential buyers will know. With it being a buyer’s market in most areas, Buyers have a lot to choose from. Kitchens and bathrooms can sell a home, so don’t skimp there. Stainless appliances, updated light fixtures, and attention to detail can make your investment really shine. If you have set your budget accordingly, adding those final touches that help your flip stand out above the rest!
5. Price it right. If you have followed the other 4 steps in this article, setting the right price should be easy! Don’t get greedy. It can cause you to hold onto your home longer than you need to, eating away at your profit. A great home with quality renovations… priced below your competition…will be SOLD before you know it!
For other great tips on “flipping” check out the new book: Flip - How to Find, Fix, and Sell Houses For Profit by Rick Villani and Clay Davis. Visit www.millionairesystems.com to get your copy of this informative book. Happy Flipping!
Great tips for making sure when you flip Chattanooga Property it’s not an expensive flop - I love your great blog titles too - fun reads!