Avoid A Flop With These 15 House-flipping Tips

Tip #6: Pay attention to detail.

When making big renovations, there are usually three main areas that you need to focus on: the exterior, the interior, and the mechanical systems. Each of these areas has its own details that need to be considered for the renovation to succeed.

Exterior: 

The first thing you need to consider when renovating the exterior of a property is curb appeal. This is the first impression most prospects will have of your property, so you want to ensure that it looks good.

Pay attention to detail when painting or staining the exterior of your property. You also want to make sure that the landscaping is well-maintained.

Interior: 

Kitchens and bathrooms are always a great place to start. These are two of the most important rooms in the house, so it’s important to ensure they’re in good condition. Also, adding a bedroom, bathroom, and living area can significantly increase your home’s value.

Mechanical Systems: 

Finally, you want to pay attention to detail when dealing with mechanical systems such as plumbing, electrical, and HVAC. These are intricate systems that need to be installed correctly for your property to function properly – the overall liveability and feeling inside your home will affect how well your home performs when it does go back on the market.

Tip #7: Create a timeline for the flip and stick to it.

If you are looking at getting into the business of flipping houses or renovating for profit, you really need to have a timeline worked out from the outset and then try your best to stick to it. Otherwise, you could spend more years working on the house without ever seeing any return on your investment, and it doesn’t really serve the purpose you intended when you set out!

Being efficient will help keep costs down, too. Just be realistic about what you can accomplish in your time frame, and this will mean having a good understanding of who will complete the work and how this will be organised!

Tip #8: Get insurance.

Insurance protects your investment in case of fire, wind damage, theft, or other covered hazards. When flipping, it’s important to have this type of protection in place in case something unexpected happens.

There are three main types of insurance to consider:

• Building Insurance helps protect the physical structure of the house.
• Construction Insurance is important while you are building.
• Contents insurance which covers all the items within the building.

When building and renovating, you might also require contract works insurance and/or homeowners warranties. The work you are completing and how you complete it will determine what insurance you will require.

Tip #9: Don’t forget about permits.

As you become one of the house flippers, it’s easy to get caught up in the excitement of finding an investment property, negotiating a good price, and getting started on the renovation work. But before you tear down walls and put in new floors, there’s one very important step you need to take—obtaining the necessary permits.

Which permits you specifically requipe will vary depending on your area. Make sure that any builders or contractors you hire are licensed and insured.

Please understand that this is not an area that you should scrimp or save! The new purchasers will want to see what permits were obtained, and any irregularities here will leave you open to risk.

Tip #10: Do your due diligence.

If you are not confident in understanding the condition of an existing home, you might want to hire a professional building inspector to understand the current issues.  A good building inspector can help you avoid potential problems down the road and can give you peace of mind.

Here are ways to get a trusted building inspector when flipping.

• Do your research. Not all home building inspectors are created equal. Some are more experienced, some are more detail-oriented, and some charge more than others.
• Ask for recommendations. Talk to other real estate investors and see who they use for their inspections. Word-of-mouth referrals can be beneficial in finding a good building inspector.
• Interview multiple inspectors. This will give you a chance to get to know the inspector and see if they’re a good fit for you.
• Make sure the inspector is licensed. This is important for protecting yourself if something goes wrong during the inspection process.
• Ask for a portfolio. You want to ensure the inspector has experience with the type of house you’re flipping, so they can identify any potential problems.
• “Be there” for the inspection. If possible, try to be present for the inspection so you can ask questions and get clarification on anything that comes up.
• Follow up. After you’ve received the report, follow up with the inspector to discuss any items of concern and make a plan for addressing them before making an offer on the property, unless you have a subject-to clause.

Tip #11: Keep thorough records throughout the process.

Being a real estate investor is a lot of work. Not only do you have to find good properties to invest in, but you also have to renovate and sell them for a profit.

Staying organised may not seem like the most glamorous part of flipping houses, but trust us – it’s important. Keeping good records throughout the flipping process will help you stay on track, avoid costly mistakes, and make the most of your profits.

Tip #12: Work with a qualified team.

When renovating houses, you’ll need to partner with qualified professionals, from real estate agents to builders, trades and other professionals like conveyancers, mortgage brokers, photographers, stylists and beyond. Knowing who to work with (and who to avoid) can make all the difference in a successful flip!

Renovate with BuildHer Collective

At BuildHer Collective, we are all about helping our clients make the most money possible from their real estate investments.

We offer a range of services, from courses to help you build your dream home, to masterminds on renovating for profit or flipping houses to interior design for developments or renovations. Plus, we have a heap of freebies like the Project Profit Calculator that can help you assess your potential renovation and the potential profit you stand to make.