Last week, one of our partners listed a property on the market for $1,099,900 in Miami’s Morningside neighborhood.
The home is stunning — a sleek single story, complete with world-class Viking appliances, light wood interior, modern bathroom finishes, and an expansive yard/swimming pool.
See it for yourself here: http://idx.spectrumrg.com/info/property/residential/A10471940/
Based on that price tag and the accompanying pictures, you wouldn’t imagine how this project began… Can you believe it was purchased in 2016 for just $345,000? It’s on the market now for a whopping 219% higher price than where it began.
Friends, this is the art of home flipping… Having worked on similar projects ourselves, we understand what it takes to successfully flip a home in this manner and the common errors first time home flippers encounter.
For this week’s article, we want to share those insights with you. Buckle up, and welcome to home flipping 101!
1) Do Your Homework
At first glance, flipping a home seems easy, fun, and glamorous. We’ve all seen the TV shows. After all, who wouldn’t want to buy a property at rock-bottom price, make some improvements, and then turn around and sell for a massive profit?!
The truth is, managing this type of investment is much harder than you might expect.
From financing the purchase to navigating the local market, hiring contractors, identifying potential buyers, and closing the sale, the laundry list of tasks goes on and on.
We recommend starting with the basics. Here are a few resources you can check out to get up to speed quickly:
- Market insight: http://idx.spectrumrg.com/info/search/property/
- Financing: https://www.hgtv.com/design/real-estate/how-to-finance-a-new-home
- Negotiation: https://loans.usnews.com/negotiating-tips-every-homebuyer-should-know
- Home improvements: https://www.investopedia.com/investing/types-home-renovation-which-ones-boost-value/
- Contractors / renovations: https://loans.usnews.com/tips-for-finding-a-reliable-home-contractor
2) Find a Mentor
There is no better person to guide you through the home flipping process than someone who has done it already!
Ask around your network, chat with local agents, go to real estate events, etc. to gain insights from experienced flippers.
There’s a good chance an experience flipper won’t readily tell you all their secrets (assuming they aren’t your friend already), so you’ll need to put in some time, money, and effort to get to that point. Offer to buy their dinner as a starting point or even suggest a small commission percentage of your first project to incentivize them to help you!
3) Research Listings & Make an Offer
The most common way home flippers purchase properties is through foreclosure. There are many websites out there catering to foreclosure investors, a few of which can be found via the links below.
When doing your research, it’s important to find homes that are in need of repair but don’t require massive overhauls like new roofing, plumbing, or wiring. If you can find a home where the garage door repair cost is low but the potential value of the home is high, that is the sort of property that you want to think about flipping.
If you need help with research, showings, offers, or closings, our team is experienced in both investment properties and home flipping and is more than happy to schedule a quick call with you: firstname.lastname@example.org or (305) 921-0972.
4) Select Improvements & Hire Contractors
Arguably the most crucial aspect of home flipping is selecting which improvements will make the biggest impact on the sale while keeping your budget within check. Don’t spend money to spend money — be purposeful and selective in your decisions.
Another upgrade is to get a home security camera alarm system
installed into your project, as you’re not going to want to miss this out when renovating your property and here’s why… Why upgrade all the contents and spend thousands if you’re not going to protect it? This is why a new security system is key when wanting to renovate.
The kitchen is always a great place to start. We’ve written in the past about the importance of the kitchen when selling your home, so this shouldn’t come as a surprise…do get a contractor though. You might want to look at Forever Spaces or someone similar to see if they can help you out.
Without a doubt, the kitchen is the most important room in your home. Top-of-the-line stainless steel appliances, modern countertops, durable flooring, and high quality fixtures are must-haves when flipping a home.
Check out this article for additional insight: https://spectrumrg.com/killer-kitchen-upgrades-that-sell-homes/
For reliable contractors, we recommend using word of mouth referrals and/or a site like Angie’s List, Houzz, or Home Advisor since those feature actual reviews of the professional.
For more information, or to discuss your own home flipping project, drop us a line at email@example.com or (305) 921-0972.