We’ve all seen the shows on HGTV showing couples buying homes, fixing them up to look completely amazing, then selling them for a ridiculous profit. But, realistically, there could be hollywood magic involved where they either go over budget, or the timeline is not what is portrayed.
So, how do you do it and avoid the pitfalls that could sink your whole project? First, it helps to be in the Charlotte area. The queen city came in at #47 out of the top cities to flip houses based on a report by WalletHub. This means that there is plenty of opportunity here in town to purchase a home below market value so you have a better chance to make money on a flip.
Second, it really helps that interest rates are really low right now. You can save a lot of money on carrying costs on holding a property right now.
Third, it is invaluable to have a good team. You need a Realtor, a General Contractor, and maybe some subcontractors on your team. This can help you to save money, but you either need to do all of these jobs yourself, or plan to split your profits with your team.
When you choose a project, make sure it is a home that needs only cosmetic fixing. If you start changing a floorplan or getting into major plumbing or electrical jobs, you are going to be paying big money.
Be choosy when looking for a home and make sure it is in a desireable location as that will help tremendously when it comes time to sell the home. Consider staging the home for a final sale as most buyers have a hard time imagining how their stuff will fit into the home. Staging is a way to help buyers imagine a lifestyle.
Finally, a word of caution. Flipping isn’t for everyone, you need a tolerance for risk if you are going to see the biggest payoff. If that’s not your style, there are plenty of homes that have been fixed up wonderfully that our Realtors would love to help you purchase.