If you paid attention to the housing market last year, you noticed that home values rose rapidly. The sale price for a mid-level home went up an eye-popping 17% from the year before.
With home values rising that fast, you may want to get in on the action and make some money with a house flip.
If you are wondering how to start your house flipping career, you’ve got to have a plan. Despite how easy it looks on TV, flipping a house can have some costly headaches if you don’t know what you are doing.
Ready to flip your first house? Here are the top five house flipping strategies to get you started.
1. Location, Location, Location
You’ve probably heard of the idea to buy the worst house in the best neighborhood. These are good words to live by when you flip a house. If the homes in the neighborhood are worth more, you can potentially get more money for your flip.
The first step to flipping a house is to figure out where you want to buy. Watching the real estate market will help you narrow down the best places to invest in.
2. Figure Out Your Budget
Making a budget will be vital to the success of your house flip. Flipping with no money can be a challenge. If you aren’t sure where to start, some people can walk you through the process. Be sure to check it out if that is an option you want to try.
Consider the after-repair value (ARV) 70% rule to get the most bang for your buck. This means when budgeting for your flip house, you should invest 70% of the ARV value minus the money you have put into the repairs.
3. Know Your Limits
Flipping a house doesn’t mean you need to do everything alone. Know your strengths and what you need to hire out for. Before you start your flip, make sure you have a team in place who can help with anything you aren’t able to do yourself.
4. Make the Purchase
Once you’ve decided on a location and figured out your budget, it’s time to find a house! When looking at houses, bring a general contractor along so they can point out what repairs you may need to make. This will help you rule out properties that are too complicated to fix that could sink your budget.
5. Sweat Equity
Don’t underestimate the power of sweat equity when you flip a house. Sweat equity, or labor you do yourself, can save you big bucks in the long run. As a beginner house flipper, chances are you’ll be putting a lot of sweat equity into your first flip house.
How to Start Your House Flipping Career and Make Money Fast
It can be nerve-wracking to start flipping your house, but a very rewarding venture if you have a plan. Once you know how to start your house flipping career, you’ll be on your way to some quick cash!
Did you find our house flipping article helpful? If so, there is more where that came from! Check out our other home and business blogs today.