If flipping a house is in your future, research will be your best friend. With its ever increasing popularity, house flipping has become common place in just about every city across Canada.
While renovation television has made it look easy, house flipping involves more than slapping on a fresh coat of paint. Before fulfilling your dreams of flipping a house, do your homework. It's very important to consider all the angles before jumping into the flipping market.
At first glance, the idea of flipping a house may seem like an opportunity to make some quick cash. It's important to understand your risks when flipping a house. It's also imperative that you consider all the factors that can make or break your flipping project.
Though buying the ugliest house in the prettiest neighborhood might not be necessary, keeping along these lines of advice when considering where to buy, is a wise idea. The buyer should know the area they are planning to buy in as well as the demographic. If your buyer isn't in the market for a starter home, you won't want to be trying to sell a house with only two bedrooms.
You will likely be enlisting the help of many professionals throughout your flipping project. In order to make a little money in the end, you will be doing some of the work yourself. If you're a plumber and a carpenter, great. But if you simply know your way around a drill, that will suffice. Often, the renovations necessary to get that flip in tip top shape are small and plentiful. Lots of painting, cleaning and finishing work. Leave the heavy lifting of construction to the professionals. In order to meet building code, electrical and structural changes will likely take more expertise than you, in all your handiness, can provide.
You also want the work done properly. Unless you have years of experience in renovating a kitchenor bathroom, that's another job left to a professional. Sloppy work will not help you sell your home, and any homebuyer will notice countertops that aren't level, or poor grouting work done on bathtubs.
If possible, you'll want your contractors decided on and possibly lined up even before you purchase your flip. The sooner you know what you'll need, the better. This is where research and due diligence will be an asset. Check references, and get quotes ahead of time. Also, consider your timeline and the timeline of any contractor you are thinking of using. If you're left waiting for your plumber to get the job done, you might find yourself making an extra mortgage payment. Time is money when you're flipping a house.
Coming up with the down payment for that flip is only the beginning. Whether you use savings or credit to fund your flip, you’ll want a buffer zone of funds. Finding yourself with a maxed out credit card with two weeks to go in the project will show your lack of planning. No matter how much experience you have in flipping houses, there is always a certain amount of estimation involved. Everything from the cost of renovation, timeline and selling price. These factors make flipping a house, both exciting and scary. Any number of these variables, will make or break your flip.
And finally, if this is your first flip, don't quit your day job. It's not as easy as it looks. A successful flip, however can ignite a passion for this high adrenaline industry and put a little cash in your pocket.