The world of real estate can provide either a passive or aggressive path to income. If you’re simply investing in turnkey rental properties, you may be on a more passive route in the real estate world. However, if you’re flipping properties for a living, you’re on a more aggressive path. Flipping homes requires repairs and improvements and requires you to know your market and know how to get a good deal. Once you’ve secured a property for a good deal, then you’ve got to work hard to quickly turn that home into a sellable property.
If you’re a first time real estate investor or a new investor, the whole process can be daunting and overwhelming. From getting fix and flip funding to all of the upgrades and fixes that a home is going to need. Most homes that you’ll purchase to flip will need moderate to extensive renovations. If you’re doing the work yourself, you may find yourself working around the clock. However eager you may be to get the home on the market and make your profit, there are some things that can’t be overlooked in a flipped home.
Here are some must do home improvements for house flippers.
1. Structural repairs. Structural repairs absolutely cannot be overlooked. If they aren’t repaired, structural repairs are something that could pop up in a home inspection as a red flag to buyers, making the home nearly impossible to sell. Structural repairs can be costly and can include moisture damage, bowed walls, and foundation issues.
2. Paint. Painting a home can make a huge difference to buyers. Paint has the ability to completely transform a space, without being too costly or time consuming. While many flippers paint the interior of a home, sometimes the exterior is overlooked. While painting the exterior of a home is more difficult than the interior, it can make a huge difference in curb appeal and will help a home sell more quickly. Sticking to neutral colors inside and out will help you appeal to a wide range of buyers. It’s also important to paint baseboards, trim, and doors to give them a fresh feel.
3. Flooring. Flooring, like paint, has the power to drastically transform a home. Although flooring is more costly than paint, you can often find great deals on carpet, laminate, and vinyl, particularly if you’re buying large amounts at a time. It’s important to be familiar with what types of flooring should go in what rooms. Bedrooms and hallways should be carpeted, while kitchens, bathrooms, and living rooms do better with laminate or vinyl. Popular laminate options include dark wood and grey washed wood.
4. Landscaping. Curb appeal is high up on the list of things that can make or break a sale on a home. The landscaping is the first thing a potential buyer will see when looking at a house. Properly landscaping a home can raise a home’s value by thousands of dollars, but you don’t have to spend that much to do it. Try calling local landscaping companies or nurseries to see if they offer wholesale pricing or if they’ve got old mulch, plants, or trees they want to move. You can also check out local online yard sales.
5. Appliances. While appliances can be a costly upgrade to a home, it’s also a necessary upgrade. If a buyer walks into a home with outdated appliances, they may be turned off and not make an offer at all. They also may try to negotiate the price of the home way down to accommodate for the out of date appliances, cutting into your profit. While most buyers today don’t require top of the line appliances in a new home, they do expect a certain standard and outdated appliances just won’t cut it. Stainless steel and black appliances are the most popular choices among buyers today.
Before putting a flip home on the market, its important to make sure you’re putting out a good product and that you’ve made all the appropriate updates and renovations to the home. A potential buyer should walk into the home and believe that all their needs and wants can be met by the home. It’s also important to have any and all structural repairs done so that the home can pass a home inspection with flying colors.