Fix and flip projects have gained massive popularity among real estate investors in recent years. Because renovating dilapidated homes for profit is a fun and enjoyable activity, many people are choosing to leave their boring office jobs and rehab houses instead.
The formula for succeeding in this type of real estate investing is simple: you have to recover the money you spent on renovating a property plus interests. Therefore, you have to make sure that every repair you made on the house will result in an increase in its value.
Before picking a fix and flip project, you have to make sure that the investment property has good location. Are there a school and a hospital nearby? Is the neighborhood safe and secure? Do the homeowners have to drive hundreds of miles just to get to the nearest grocery store? You have to ask yourself these questions so you can choose a house that has already a selling point.
When rehabbing a property, take care of the house’s plumbing and electrical systems first. Make sure that there are no pipe leaks in the basement and that the bathrooms are fully functional. Replace broken toilet bowls and unclog sinks. When it comes to the property’s electrical and lighting system, throw out the broken light bulbs and replace them with new ones. You also have to make sure that nobody will get electrocuted if someone touches an electric cable.
The roof, windows, and sidings are also some of the important things to look into. Immediately fix holes on the roof to ensure that the house will always remain dry. If needed, install new windows and sidings to improve the property’s exterior. This can help attract the attention of passersby who could be potential home buyers.
Now here comes the fun part, redecorating a fix and flip project. Repaint the walls or install new wallpapers to spruce up the house’s look. Putting up new cabinets, carpeting, and other fixtures will help, too. If the property has a yard, you might want to replace the dead lawn and plant flowers and other ornamental plants.
However, always remember that you shouldn’t go overboard when redecorating a fixer-upper. Keep it simple and don’t forget that you are fixing a property to earn money, not to join a home redecorating contest.
Meanwhile, if you want to learn more tips on how to handle fix and flip projects, visit REIWired.com, your best source of quality real estate articles, audio files, and videos.