(Gloucestercitynews.net)(July 10,2020)--Across Gloucester City, South Jersey, and Philadelphia, there are tons of big, beautiful homes with even bigger price tags. Some homes may have gone unloved for a few years or even decades. These homes might not be attracting many house buyers, but they’re full of potential for anybody who wants to invest in a renovation project. Here’s how to make money by fixing and flipping houses.
Choose the right property for you
The most important first decision to make before you even view any properties is how much work do you want to take on. Some renovations might just need superficial changes, like walls painting, floors relaying and installing new kitchen cabinets or a bathroom suite. These could be done by most people with a certain level of DIY knowledge, and there are lots of tutorials online to help.
Some homes will need a lot more work. This could include anything from rewiring a whole house, replacing a roof, or even making the building structurally sound again. If this is the case, research how much it’ll cost to employ someone to make these problems right. It’s essential to be confident in the level of work needed before making an offer. Employ a surveyor to take a thorough look at the property, so there aren’t any problems that go undiscovered.
Secure the finance
Once you’ve found a property, you’ll need to find the finances to buy said property. Although fixer-uppers tend to be a lot cheaper than most homes, it can still be hard to afford a second home. This can be especially true if you’re personal financial situation isn’t great, for example, if you owe a lot on your first mortgage.
Don’t let the opinion of traditional mortgage providers stand in the way of improving your financial situation. You can secure particular fix & flip loans to help provide enough money to secure a second house. Companies like Sachem Lending understand the benefits of buying a property at a discount and then selling it on for a high profit and could provide you with the money without needing to verify your income. As they are less intrusive than traditional mortgage applications, you could even have the money approved and available within the same week.
Stick to budget
Now you’ve got your project house, you’ll want to make sure you maximize the amount of profit you can make. Calculate exactly what you want to spend on the house, and how much you expect to sell it for in the end. Decide if you wish to use expensive fixtures and fittings throughout the whole house to attract bigger spenders, or whether you just want to keep the décor basic and affordable to a broader audience. Compare your home with other homes on the market locally to get a better idea of what you can expect to earn once you sell your investment. Once you’ve made these decisions, it’s so important you stick to them. Every dollar you spend over budget is a dollar less that you’ll receive one you’ve finished.
image courtesy of unsplash.com