Recently, more television shows surrounding the fix and flip niche have become extremely popular. In reality, you can make money fix and flipping homes. These shows highlight the “good”, such as an amazing renovation and big profits. However, keep in mind each project is different and it’s not all glitz and glamour. Fix and flip projects are a huge undertaking and come with ups and downs.This article will highlight a few of the most common mistakes newbies make when fixing and flipping and how to overcome them!
Cheap Contractors
People from every business are trying to make a profit and get a good deal. With that being said, beware that most people are not as qualified as they seem. According to Sharestates CEO & Co-founder, Allen Shayanfekr from a realtor.com article, “In one of the first houses we ever flipped, we used the cheapest contractors we could find instead of the most qualified. I came to regret that decision while hosting our first open house when a prospective home buyer visited the restroom and found out the hard way that the bathroom pipes had actually been rerouted to the kitchen sink. When he flushed the toilet, its contents started spewing out of the kitchen faucet. It doesn’t get more horrifying than that!”
Unfamiliar Areas
Finding a house to flip is a great feat, finding the property in a familiar area is another. Many experienced people in the industry know where they like to purchase homes and where to conduct their fixes. No matter how experienced someone is, it is impossible to know everything about every single neighborhood. Such as knowing who the neighbor is next to the property or that in the summer months the house across the street rents to college students. Since the project will more than likely be worked on during the day and not at night consider purchasing some type of alarm system. This way when you leave the property you know that when you return the next day everything will be as it was left. Security systems are important not just to prevent intruders from entering the house but to protect your investment from fires and carbon monoxide poisoning.
Luxury Appliances and Features
Buying the best appliances and features for your fix and flip sounds like a great idea when remodeling a home, right? Wrong! It is very easy to go over budget when it comes to designing a home. Budgeting is one of the easiest parts of a renovation project that can be miscalculated. To avoid a budgeting nightmare try and be mindful of the items you choose. Typically you want to aim to buy quality, low cost products to ensure that you stay within the means of your budget. Saving money on items such as paint, flooring and appliances can also allow a greater earning potential!
To prevent fix and flip disasters from happening do your due diligence and understand what kind of a project you are getting into. Any house can be turned into a masterpiece with the right planning, budget and people involved.
