Flipping a home can be a legitimate way to make a hefty profit. There are people who make flipping houses their livelihood, not only because they can make good money but also because they enjoy the process.
Finding a home at a good price, making key improvements, and then reselling it for a profit isn’t easy, but it is satisfying and many people enjoy the challenge.
How Do You Choose Which Homes to Flip?
Ideally, choose a home that is perhaps a bit dated or needs some work but offers good features and doesn’t have any major problems. There are great houses that just lack cosmetic appeal and need a little work.
Flipping a home means taking a risk and maybe putting in a lot of work and time, but the results can be well worth it. A house that makes a good investment may have:
- A large yard
- Fireplaces or other charming extras
- A large kitchen and/or ample storage areas
- Good-sized bedrooms
Another thing to consider is location. Is the house in a good, safe neighborhood? Is it perfectly situated for commuters or near good schools? These factors make a big difference.
How Do You Improve a House for Flipping?
There are some fairly easy improvements that make a house more desirable and increase its value. Ripping up outdated carpet and replacing it with laminate or tile floors and giving the interior a fresh coat of paint can go a long way toward making the home more attractive.
New entry doors, a new garage door, and some outdoor maintenance work enhance curb appeal.
In the kitchen and bathrooms, refinishing cabinets and installing new flooring is a good idea, as is replacing faucets and other outmoded fixtures.
In some cases, you may need to replace the roof and the heating and air-conditioning system. While these improvements are pretty big expenses, they can drastically increase the value of a home.
The Benefits of Buying a Flipped Home
You may have heard cautionary tales advising you to steer clear of flipped homes, but that’s not necessary. After all, many of the upgrades and repairs made to the home were things you were going to have to do anyway. It’s a good idea to do your homework, though, and make sure that repairs or improvements were done by reputable contractors.
Overall, flipping a home is a great way to invest and build income. If you are the do-it-yourself type, you can also have a lot of fun turning homes from outdated, boring houses to beautiful homes that make you a tidy profit.