For many older homes built with solid construction, it’s a good idea to refinish them to look like new. The wooden beams and the unique distribution are used. Many older homes that are still in good shape are ideal options for remodeling and making a profit.
To start, do a detailed inspection. A home that has extensive insect damage or rain rot on the walls is not a good candidate for a quick turnaround. A detailed renovation may be worth the time, but it won’t be cheap. Also, older homes that have had additions can have some serious problems with cobblestone wiring. Strange taps to run pipes may mean structural beams have been cut. A detailed inspection can reveal all of this.
You’ll need to make sure you cover any and all fees, insurance, mortgage costs, etc., while the house is in your name. Expect the unexpected and take a 20% cushion to ensure you can maximize your profits. The more down payment you can afford, the lower (usually) your interest rate will be. This way you lose less money if you have to hold onto it for a while.
As with investing in stocks, you want to buy for as little as possible and sell for as much as possible. Trying to find the right house can be tricky, but it exists. In some markets, there are foreclosure properties to look for that are cheaper to get. Be sure to look at your market too, so you don’t end up with a house that’s too expensive for its surroundings.
So, it’s time to start flipping! If you have the skills, try doing the job yourself. Updating the insulation, upgrading the plumbing and electrical wiring, and adding an air conditioner will benefit you the most. Just make sure you’re not violating any permitting requirements in your state. If you need to use a contractor, be sure to do your homework first. The last thing you need is to be burned out by a bad contractor.
The quickest upgrades can include new flooring, new paint, and updated cabinets. Surprisingly, a cosmetic facelift can transform a home. Buyers looking for move-in ready homes will gravitate here.
Most of the value of a kitchen remodel or bathroom renovation can be recovered at the time of sale. New cabinets, new fixtures, and even new appliances make the kitchen look like new. A sparkling shower and modern sinks make any bathroom an oasis, especially for busy parents.
There are places in some markets that recycle building materials, so you can save some money. Being able to advertise the renovation of your organic kitchen could attract a different group of buyers. Your savings on the back end can also mean more profit on the front end.
It’s amazing how much a few plants can transform the look of a home. It’s called curb appeal and refers to the view from the street. Curb appeal could also involve painting the exterior of the home.
If you are successful, a flip can be a lot of fun and a win for you. Flipping is an art and takes some practice. Be patient, be careful and get ready for a unique experience, transforming an old house into a new paradise.
