Tips For Flipping Houses In SWFL
Although house flipping – buying a run-down house, fixing it up, and selling it at a profit – isn’t quite as popular as it used to be, it’s still a viable option to boost your income, especially if you have some home improvement skills. It’s important to go about it the right way, though, or you could find yourself caught in an unexpected money pit. Do your research, follow these tips, and make sure you’re fully prepared before you jump into the house-flipping game!
- Don’t bite off more than you can chew.
It’s best to start small, especially if this is your first time renovating a property to sell. Start with a small home that isn’t too run-down. Your profit might not be as big, but your costs – and therefore the risk – will also be smaller. Talk to your realtor about which neighborhoods are growing and improving to make it easier to turn a profit, so that you can benefit from rising property values as well as the improvements you make to the house.
- Plan every step of the renovation.
It’s tempting to dive right in and start fixing every problem you can find, but that way lies disaster. First, make a list of all the improvements you want to make in the home and determine which of them you can handle yourself. Then start interviewing contractors for the jobs that are outside your skill set and talk to your municipality to find out what improvements will require permits or inspections. Armed with this information, draw up a schedule and a budget and do your best to stick to them. The more organized you are, the less stressful the process will be.
- Make sure you understand all of the costs.
Obviously you’ll need to factor in the costs of the renovations when calculating your profit; however, don’t forget about operating costs in the meantime. That means mortgage payments, utilities, interest on any loans, closing costs, etc. This can take a big chunk out of your potential profits, so keep careful track of every penny you spend on the house.
- Don’t over-improve the home.
Renovating a house is exciting, but don’t get carried away! Make sure to keep your improvements in line with other houses in the area. If you’re surrounded by luxury homes that are equipped with granite countertops and stainless-steel appliances, go for it! However, in a neighborhood that’s not quite as high-end, keep it simpler and don’t fix things that aren’t broken. All you’ll really need to do is make the house move-in ready; anything on top of that could end up making the house harder to sell if it’s too different from the surrounding properties.
Work With A Local SWFL Realtor To Start Flipping Houses
Talking to a realtor with thorough knowledge of the real estate market in Naples, Estero, Fort Myers, and Bonita Springs should be your first step if you’re thinking about getting into the house-flipping business. The Link Team can advise you on what neighborhoods are up-and-coming and help you find the perfect house to get started with. Contact us now through our website or call (239) 357-5058.