If you’re a house flipper, then you have probably seen your fair share of homes that are for sale. One of the best things about house flipping is turning something old and run-down into something new and beautiful. Flippers usually look for structurally sound homes in nice areas that have a lot of potentials. Something else that you should keep in mind is the style of the house you’re looking at. The type of home can have a big impact on how long the flip will take, what you’ll be able to do in the flip, and how many buyers would be interested in it. To help you understand, we’ve compiled a shortlist of some of the most common types of houses you’ll come across when buying for a flip.
The first type of home we want to discuss is the classic multi-family home. As you would imagine, these homes are designed to house two or more families. You can also hear these referred to as duplexes when there are two separate residencies. A multi-family home can have apartments by floor or by a vertical section of the house. In other words, Family A could live on the first floor while Family B lives on the second floor, or Family A lives on the right half while Family B lives on the left. Multi-family homes are typically larger than other houses and will, therefore, be more work to flip if it’s in rough condition. They can also be challenging to sell because people may not want the responsibility of caring for a house and acting as a landlord. The exception being if different parts of the same family live in one house (Mother lives upstairs with Father while the Daughter and her Husband live downstairs with their children).
Once again, we’re sure the name gave it away with this type of house. These homes are constructed with one family in mind. There are no separate apartments. Single-family homes can have multiple stories, but the house is not divided. House flippers tend to like single-family homes because they are very popular on the market. They give you enough real estate to work with without being too big of a flip to handle. You can do a lot in a single-family home including changing up the layout, adding and removing rooms, and more! Depending on where you buy, the home can be very spacious or much more compact. You have plenty of options with single-family homes, so definitely be on the hunt for them!
Split-level houses can also be considered a type of single-family home. What makes a property split-level? These homes have multiple floors connected by shorter staircases. They are not uniform and can have different floors on only certain parts of the house. One example is any home with an integrated garage. Obviously, if you have a garage taking up space on the ground level, you cannot have rooms there. You can, however, utilize the ground-level on all parts of the house that are not the garage. Of course, you don’t want to lose real-estate, so you might have a second floor over your garage. Maybe it spans the entire house, or maybe it doesn’t. This same mix-match style can be used for three or four floors as well. Basically, if the floors of a house are not uniform, it’s a split-level home. Layouts are slightly harder to flip in these homes because of the architecture, but you can play around with where each room will sit in the house. Some buyers find split-levels very attractive, but others do not like the lack of uniformity. Make sure there are similar houses around you to know if people in the neighborhood are for or against the split-level look.
Ranch homes are typically a single-story home that has an open concept layout and is shaped like an “L “or a “U.” Other common characteristics include low-pitched roofs and extended eaves. In traditional ranches, you’ll find large picture windows facing the front yard, sliding glass doors opening to the back yard, attached garages, and large porches or patios. Over the years, the ranch-style has evolved to include multiple floors, but traditionalists disagree with the nomenclature. Ranches are hugely popular all across America because they are simple to construct, feature an open layout, and are perfect for single-families or couples. People find ranches appealing because they are generally not too large and they have no stairs. Physically disabled people often search for ranches for that very reason, as do the elderly. As a flipper, you can feel confident that your upgraded ranch will sell, so long as you make it look modern but still homey. Some ranches can look very out-dated which is something that will be a turn off for potential buyers.
Last but not least, let’s talk about townhouses. Townhouses are multi-floor homes that share one to two walls with adjacent properties but have their own entrances. Picture the classic brick row houses that lined the streets of all major cities. Many Townhouses have their own Homeowners Association, especially in the suburbs. Townhouses can have two to three floors and are often very narrow. They can be purchased or rented depending on the location and if there are any Homeowners Association regulations in place. Townhouses are great because they often cost less than stand-alone homes, and they occasionally include external maintenance by the association. For flippers, you do not get to alter the exterior. You cannot do any major demolition, and the layout is hard to change thanks to the narrower floor plan. However, Townhouses are very popular in cities so you’re almost guaranteed to sell if the price is right. You can create a beautiful and modern living space inside of traditional, look-alike brick homes. Many buyers love the history behind townhouses, and they’ll jump at the chance to own a newly-flipped one!
There are many other types of homes that could be discussed, but these are a few of the main ones you’ll come across. Do your research into what type of home is in demand in your area before you purchase your next flip. Each type of home has its pros and cons, so know what you’re getting into. Try flipping several different types and see which one you have the most success with! If you need some help purchasing your next project, contact Zinc Financial! We work specifically with house flippers to get them the funds they need to start working on their next home. We offer fix and flip loans from $50k to $2 Million. Want to work with us? Apply online and we’ll get to work! Visit https://bsyl.ink/Zinc-Borrowers to learn more.