House flipping shows make it all look very simple – all you have to do is buy a house, remodel in record time, and sell for a profit. But the reality is that it’s a lot more challenging than it looks on TV! Here’s some advice on what to do and what not to do when you’re flipping a property, from our team of cash home buyers in Dallas.
Two Ways to Flip a Property
First of all, there are two ways to flip a house. You can either buy a property that, once repaired and updated, will sell quickly for a profit. This is the type of house flipping we all know well from the home makeover shows. The other option is to buy a house in an area where property prices are forecasted to rise. You can rent it out for a few years or even live in it, making little or no changes to the property, and then sell it when the market is right.
Expert Tips from Cash Home Buyers on How to Flip a House
Flipping property is just like any business venture – there are risks to go along with the potential for profit. Here are some tips to help you get it right.
#1 – Use as Much Cash as Possible
Adding to your debt adds risk to your project, so it’s best to buy a property using cash, or at least using as much cash as possible in order to reduce your debt. Using a mortgage provider means you have to pay interest and fees, that the pressure is much higher to sell quickly rather than get the best price, and increases your risk of making a loss on the investment.
#2 – Know the Market
In order for any investment to be successful, you can’t rely on your gut or good luck – you need solid knowledge of the market. With the right local knowledge, you’ll be better able to determine what a good investment property actually is, what a good price for that property would be, and the potential value for the home will be when you flip it.
This will help you avoid mistakes like buying at the top end of the neighborhood’s value, overspending on your remodel, and selling for lower than you should.
#3 – Make a Budget – And Stick to It
Your budget should be in place even before you purchase your investment property. You should know your price range for buying a property, how much you will spend on repairs and remodeling projects, and include the costs of buying and selling the property. This should be based on thorough research and quotes from contractors, as well as quotes from local real estate agencies if you are going to utilize their services.
One big mistake people can make when house flipping is not having a clear idea of what the property needs done to it to make it profitable. Surprise problems with the home’s structure, plumbing and heating systems can quickly push you overbudget, so always get a professional home inspection before you commit.
#4 – Choose the Right Remodeling Projects
Often, this is the toughest part! It’s easy to get caught up in making this your dream home, but remember – it’s an investment property. Your real goal is to make as much profit as possible off selling the property, and that means smart remodeling projects.
- Refresh rather than replace – Big, expensive remodeling projects like installing new kitchens and bathrooms don’t deliver enough return on your investment. In fact, although beautiful kitchens are high on the list of priorities for buyers, the national average ROI for major kitchen remodels is just 54%. Think of ways to update the kitchen or bathroom space rather than tearing it out and starting fresh.
- Paint – Painting is one of the easiest and most affordable ways to get eye-catching results. You can instantly transform a home with a coat of fresh paint, and you can even do it yourself to save costs. The best bet is to use modern, fresh neutrals in order to add a feeling of spaciousness and natural light, while appealing to the widest range of buyers.
- Fixtures – Modern fixtures are easy to install and instantly update a space to make it more appealing – and they can be affordable too. Consider changing out doorknobs, faucets and light fixtures to create high-impact focal points without overspending.
- Curb appeal – It’s quick, easy and affordable to create the right impression when a buyer pulls up at the curb. Clean up shrubs and trees, add lush flowering plants, a fresh coat of paint on the door, and a beautifully laid pathway to help draw in buyers from the moment they arrive.
Now you know how to flip a house!
Speak to Cash Home Buyers in Dallas to Buy an Investment Property – Or Sell Your Home Fast
If you want to sell your home fast to get the capital you need to buy a fixer upper or investment property, then your best bet is to sell directly to cash home buyers in Dallas. We also have plenty of homes for sale if you are looking to buy an investment property!
Our cash for homes Dallas team is happy to buy it for a market-related price – sight unseen and no upgrades needed. It’s completely COVID-safe because we don’t need to visit your home for viewings, and you can sell your home in 24 hours. Here’s how our process works:
- You enter your information on our website
- We’ll contact you directly to discuss an offer for your property (you can also get a free property evaluation from our website)
- You can accept or reject the offer
- You can also call us directly on 469-858-0088
You can also download our FREE eBook for more information on how to sell your home in 24 hours.
Our team is compassionate and highly-motivated to offer you the best possible market-related price for your home, so you can sell your home in 24 hours. Not only does this cash go straight into your bank account as soon as the sale goes through, you also pay zero real estate agent commission. It’s all about making selling your home as fast and as rewarding as possible!
At Shiny Key Properties, our trained consultants have years of experience in helping homeowners to sell quickly. To find out more about our cash for homes Dallas service or to speak to our cash home buyers directly, please contact us today and speak to one of our friendly team members.