To those without first hand experience, flipping a house probably sounds pretty easy. You buy a house, you invest in some updates, you sell it for more than you spent, and you turn a substantial profit – and this can absolutely be true, many projects really are this straightforward! But sometimes they’re not. Here are a few common mistakes you should avoid during your next house flip in order to ensure that it’s a success.
Not doing enough research before purchasing a rehab property.
You need to know everything you possibly can about your rehab investment property before you pull the trigger and officially make the purchase. This includes understanding the neighborhood, the condition of the physical construction, and the building’s history. This will help you get a general idea of the updates you’ll have to make and about how much you’ll need to invest. If you’re unsure about a certain property’s value, use our Deal Analyzer to help you figure out whether or not the project is worth your hard earned cash: bsyl.ink/DealAnalyzer.
Not giving yourself enough time.
Flipping a house can often take a significant amount of time, and you need to be prepared for that! It’s not worth rushing the project – take your time and do things right in order to reap the greatest benefits when it’s all over. It’s important to enter into your fixer-upper endeavor with a great deal of patience and an expectation for the unexpected.
Going overboard with high-end details or DIY projects.
Most people have different taste in design, especially when it comes to their own home. Be sure not to spend too much money on adding fancy details that potential buyers might just replace post-purchase. In addition, DIY projects can be great for saving money and making your house unique, however, they can also be extremely time-consuming. Pick and choose your projects wisely, knowing your time and budget constraints.
While there are potential mistakes that one must be aware of when taking on a fixer-upper, the rewards far outweigh the risks in a majority of flipping projects. The bottom line comes down to this: be informed and be realistic. Feeling amped to get started on a new project? Get in touch today to learn more about our loan options: (888) 552-6637.