For a long time, house flipping was a legitimate way for amateur and professional contractors to make some extra money. However, in the last decade or so popular television programs on networks like HGTV that feature amateurs flipping their first houses has convinced many people that anyone can flip a property for sale for profit. Before you decide to join the flipping craze, you should have a realistic idea of what flipping entails. We can help.
The point of flipping is to take advantage of the fact that most home buyers want a property that is move-in ready - in other words, they will only consider real estate that doesn't need any repairs or renovations - and they're willing to pay top dollar for a property that's perfect. Therefore when you're flipping a home, you need to fix it up to meet the general standards of the home buying public, not your own personal preferences.
Successful flippers know they can't just buy any home off the MLS listings and flip it for a profit. It has to meet certain criteria. For example, it has to need work, but not so much work that it will be beyond the flipper's skills and/or budget to accomplish it in a few months. The property should also be in a desirable or up and coming neighbourhood so it will sell fast once it's been repaired.
The longer the repairs take, the more your mortgage payments on the property you're working on will eat into your profits, so it's important to get a solid estimate. However, be aware that you should always pad your schedule and budget to allow for unforeseen events and discoveries, because there's always something. Make sure you are capable of paying the mortgage for longer than a few months or you could get into trouble.
Most people assume that laying flooring and putting in new countertops (one youtube video example provided) or luxury vinyl flooring is something anyone can do with the aid of a how to book and some Youtube videos, but this is not the case. Flipping a house is not a good time to be learning about home maintenance because your schedule is so tight. Therefore you should always have prior renovation projects under your belt before you go into a flipping project. And if something is seriously wrong with the house - hire a professional rather than attempting to muddle through on your own.