Many people are tempted to try flipping real estate because of the large profit potential. But successfully rehabbing a property and then selling it isn’t as easy as it looks on television. First-time flippers can easily find themselves overwhelmed by the time and effort required to make a real estate investment profitable. If you’re about to flip your first house, here are three things to keep in mind:
1) Pace Yourself. Rome wasn’t built in a day, as the saying goes, and your house won’t be ready to sell in one either. Rehabbing properties is a lot of work, so you should keep a timetable of what needs to be done, and when. All of your major structural, electrical and plumbing issues should be taken care of first. Follow that with work on the walls and floors. Finally, take care of the fixtures and appliances. Only put in as much work as you can afford, and never try to rush through any repair. If you do that, it will only come back to haunt you later.
2) Keep it Up to Code. Wherever your property may be located, there will be codes and ordinances in place that define what makes a home habitable. Don’t try to bypass any laws or inspections, even if you think nobody will notice. If your home isn’t completely up to code by the time you sell it, and if the buyer finds out after the sale, you could face thousands of dollars in fines.
3) Know When to Go Pro. While you can do many of the repairs and much of the remodeling on your real estate investment by yourself, some things are just better left to the professionals. If your house needs new carpeting, a new roof or any major electrical work, hire a certified contractor to do to the job for you. Amateur work isn’t only noticeably shoddy – it can be dangerous, too.
Flipping a house seems easy at first – until you learn what it really involves. But if you use a timetable, follow the rules and know when to ask for help, you’ll be closing your sale before you know it.
