7 “Fix and Flip” Tips for the Investor
For those who are willing to put in the time and effort, flipping houses or other real estate can be a very lucrative business. In the right market and with good insight, real estate investors can find properties that require very little work and are easy to buy and sell.
Some properties do require some repairs and fixes before they can be sold for a profit. These repairs can range from very simple cosmetic changes to a complete remodel of the home. Since the goal for most investors is to find properties that need as little repair as possible with the biggest return on investment, here we share our tips that can make a difference for investors in the property flipping business:
1. Do Your Research
By taking the time to arm yourself with knowledge about flipping houses, especially in the Phoenix area, you will be more prepared as you begin looking for potential investments. You don’t necessarily have to spend thousands of dollars to be “trained” in flipping houses, but definitely do some reading and research.
2. Talk to Other Flippers
One way to get some valuable insight into flipping houses in your area is to talk to others who already have some experience. It might seem strange to be asking questions from your future competition, but you will be surprised just how much you can glean from those relationships.
3. Who Will Handle the Labor?
Before you jump into an investment property that may need some work before you can sell it for a profit, be sure you know who will be handling the repair labor, whether it’s yourself or someone you hire.
4. Make Goals and Have a Plan
Many of those who have experience flipping properties will tell you how important it is to have specific goals and plans as you get started. Be sure to write down these goals and plans so you can hold yourself accountable.
5. Do Not Assume Appreciation
It’s easy to assume that, if the value of a home is $150,000 today, you’ll be able to sell for $160,000 based on appreciation alone. You’re safer not to assume appreciation so you’re not disappointed.
6. Hire a Home Inspector
Paying a professional home inspector to go through every inch of your property is definitely a worthwhile investment. They will find things that you didn’t even think to look for.
7. Work with Property Managers
As with any business, experience in property management can make a huge difference. You can avoid costly mistakes and errors by working closely with a property management company that is aware of the pitfalls to avoid.
For information on how Real Property Management Evolve Tucson Tucson can help you manage your investment properties, give us a call at 520-883-7368.