Areas to Fix When Flipping Houses
The key to making a killer profit in fixing and flipping houses is to know what makes it a good buy for prospective buyers. There should be a “wow” factor in the homes you flip. At the same time, you should only focus on key areas because the more areas you remodel, the higher your renovation costs (and the lower your profits).
There are some things that catch the eye of most prospective homebuyers. Below is a checklist of these:
– Structural integrity. One of the first things a buyer will look at is whether the house is structurally sound. In the first place, you should have already carefully checked for this, even before you close on a house you want to flip. If there are major problems with the structure, it’s best to look for another house to flip. However, there will be some minor structural damage that will need repairs, even for houses that are structurally sound fundamentally. This includes cracks on the walls, ceiling that are giving way and electrical outlets that need updating.
– Kitchen cabinets and countertops. If the homemaker is one of the major decision makers for the purchase, you can be sure that the kitchen is one of the first things he or she will look at. After all, this is where a lot of family life and activity happens. Give the cabinets an update by adding a fresh coat of paint, changing the cabinet handles and other fixtures or transforming a cabinet from ones with drawers into one with open-style shelves. You can also spring for new countertops and flooring.
– Kitchen appliances. Update and modernize the appliances in the house so that you are better able to demand a higher asking price. Outdated appliances can be a turn-off for prospective buyers. Go for black or stainless steel appliances that add their own branch of charm or elegance to the room.
– Bathroom tiles, fixtures and accessories. Bathrooms can look old really fast. The sink, toilet and tub can get strains, cracks or indications of wear. The bathroom fixtures can be tarnished. Make the necessary changes to give the bathrooms a fresh, new look.
– Wall color. Paint is a highly cost-effective way to change the appearance of the house, both inside and out. And the walls can get smudges or have pockmarks. A fresh coat of paint in the exterior and the interior can do wonders for the house. The important thing is to avoid overly distinctive hues. Color, after all, is in the eye of the beholder. Individuals have their own preferred color. Thus, make use of neutral colors so that paint can easily suit different color sensibilities. Pair the neutral (cream or white) walls with a few pops of color along the baseboard and trim.
– Flooring. Improving the floors need not be costly. The new owners may want to make the decision as to what they want for the floor. Thus, go for affordable vinyl or laminate floor covers that look very good but will not cost an arm and a leg.
– Lawn and garden. The outside is what the prospective buyers will first see. A well-landscaped house can demand a higher price as compared to a house of similar material and size but that do not have any landscaping. As a general rule, flowers, shrubs and trees increase the home’s curb appeal considerably.
– Doors and windows. This is another main factor in raising curb appeal. Check that the doors and windows do not just look new, but are also energy-efficient.
As you can see, fixing and flipping can require a lot of funding. This is where hard money loans can come in. This kind of bridge loan enables you to have access to funds for your renovation without having a good credit rating or taking on a second mortgage to your home.