Flipping for Millennials – What Every Fix and Flip Investor Needs to Know
Millennials are making up a large portion of home buyers in 2019. It is essential for Fix and Flip Investors to understand what millennials are looking for in their home.
Millennials are in their late 20’s to early 30’s. Some have purchased a first home and are looking to purchase their second. Other millennials have just established a career path and are looking for their first dream home.
Relying on traditional approaches to flipping a home may put you behind the curve, as millennials are searching for unique features and some unconventional ideas. Here are some tips for real estate investors looking to flip a home ideal for a millennial.
Choose a property than needs more than a touch-up. Often investors will find a listing, see it needs some small updates and figure they can make a quick return and small profit. However, those same investors tend to lose money on the deal and rarely make enough profit to make the deal worthwhile. Instead, flippers should focus on properties that need some real repairs. This is where the profit comes from. These instances may require a hard money lender, since a traditional funding source may not come through. Hard money lenders see the property for what it can be.
Millennials want connection. Open floor plans, smart home technology and access to peers and family are all important to millennials looking to purchase a home. Suburban and urban dwellings are of prime interest for millennials. With many families needing dual incomes, proximity to day care or family members are on the top of their list. A home that allows for entertaining family and friends will always be appealing.
Quality materials are in. Millennials are not only focused on granite countertops and hardwood flooring. Although nice to have, millennials are more focused on having high-quality materials that will not break down right away. Saving up for their home purchase has likely been a battle and millennials are not looking to jump into major renovation projects themselves.
Home Design focused on Function is an absolute necessity. Anyone looking to flip a home should have a plan for storage spaces, a laundry room and a mud room. Millennials expect these features in a home. Having a great design of a home that allows people to live the way that makes things easier is vital to the current market. With the increase of technology in the home to save millennials time, the space and layout of a home should fulfill the same purpose.
Relaxing, Outdoor spaces are game changers. Not used just for grilling anymore, millennials are looking for retreat-like entertaining spaces in nature. They envision having friends and family surrounding a fire pit while cooking at their outdoor kitchen. Even small properties can utilize outdoor space in unique and exciting ways. A simple outdoor table and two chairs sparks the imaginations of young buyers looking to connect with others in any way possible. A stone walkway or patio helps buyers to see the outdoor space as extra living space, in addition to the wonderful home they just toured.
Making improvements and updates to a property can feel time- and money-intensive. But with the right lender, you will be able to turn a fine property into the first-time home buyers dream, complete with outdoor dining and mud room.