7 Things to Look For When Flipping Stafford Houses
Most of us have seen the house flipping shows where everyone seems to making great profits. It seems to be the thing to do if you want to make money fast.
Well, everything is not as easy as it seems. While there is certainly profit to be made in flipping Stafford houses, there is a lot of work to put into the process. The good news is that with hard work and some research, you can join in the “flipping” craze and make some money!
Remember the old saying, “you don’t make the money when you sell, you make the money when you buy.” That means that you need to do your research and purchase a good house to flip if you want to be successful.
1: Location, Location, Location.
Time is money. You need a Stafford neighborhood where homes sell quickly. When a house sits on the market, the flipper is losing money each day.
One of the first things you need to research is the Stafford area that the house is in. Are houses selling fast here or sitting on the market longer than average?
2: Does the house meet the 70% rule?
The most successful flippers want to make between 10% and 30% ROI (Return On Investment). A successful flipper knows that they will put time and money into each flip, and if they cannot make a proper profit, they need to look for the next flip.
One rule flippers use is the 70% rule. The 70% rule asks if the Stafford house can be bought for 70% of what it will be worth once it is ready to sell. Remember to subtract the cost of repairs, closing costs, and the related real estate fees.
3: Pricing the house correctly
You need to have a place to start when pricing your Stafford house. Although it will only get you a ballpark figure, you can try to figure out the median home prices for houses in your area.
Make sure to use comparable houses that have been fixed up like your house will be.
4: Number of bedrooms
The number of bedrooms will both help determine your asking price and how quickly you sell your Stafford house. Most Stafford buyers are looking for a two bedroom minimum, so don’t waste time on 1 bedrooms or studios.
5: Try to keep the renovations to a cosmetic level
For most flippers, especially beginners, you should try to keep the renovations to a cosmetic level. Sometimes you cannot see larger problems until you are able to dig into the Stafford house, but make sure to do your due diligence and have a professional do a home inspection before purchasing your flip. It doesn’t hurt to have more than one professional look at the house.
6: What can scare your potential buyers away?
Things that scare your potential buyers away are usually the big cost or skilled labor items. For example, when a home needs a new furnace or a new roof, it will scare a lot of buyers. If they think there are electrical or plumbing issues, it will also scare most Stafford buyers.
Most electrical and plumbing issues are relatively minor when the proper professional takes care of them, and these should always be taken care of before putting the house for sale. Try to also take care of the “big ticket” items, like a new roof or furnace. These repairs will be very attractive to buyers and can help your home sell much quicker.
7: The Neighborhood is not a “flipping” neighborhood
People choose a house based on more than just what is inside the property lines. Buyers look at the neighborhood as well. Are there parks and public transportation? Are restaurants and shopping nearby? Is the house in a good school district?
To be a successful flipper study, these seven keys to successful flipping before purchasing your “flip house.”