Did you know that house flipping has been on the rise for many years?
If you’re thinking of flipping a home, you’re definitely not alone! It’s a fantastic way to make money that’s a little different from normal jobs, so it’s no wonder it’s on the rise.
But, by no means is flipping easy. It takes a lot of skill, knowledge, and planning to make money, and you should always do a lot of research before you go ahead with it.
Start your journey with this guide looking at how to flip a house.
1. Get Your Finances Sorted
Before you even think about ways to flip a house, you need to make sure your finances are in order. Create a detailed budget and check that you have the funds to see this through – if you don’t, you’ll be left with a half-renovated house that’s not worth much! To finance your flip, check out real estate investor loans, like Kiavi bridge loans.
2. Know the 70% Rule
The 70% rule is followed by many real estate investors and is a must when giving advice about house flipping. The rule states that the price you pay should always be 70% of the value of the home after repairs.
So, if a home is estimated to be worth $300,000 after repairs, 70% of that would be $210,000. Minus the repair costs, which lets put at $30,000, and the most you should pay for the home is $180,000.
3. Get to Know the Housing Market
Many tips about house flipping revolve around understanding the housing market. Look into market predictions both nationwide and in the area you’re looking to invest in to understand whether it’s a smart choice. This will also help you identify the value in any homes you’re looking at, ensuring you choose the best house to flip.
4. Choose Where to Invest
When it comes to ways to flip a house, it can be tempting to throw money at all of the problems, but this isn’t necessarily a smart idea. Instead, choose where to invest. Kitchens and bathrooms are usually good investments, so ensure those are up to a good standard, but avoid anything over the top like installing a swimming pool, which is less likely to give you a good return.
5. Look at Guidance From Experts
There are so many books, videos, and blogs out there that can help you compile a checklist for flipping a house. Look to the experts for guidance and take note of the knowledge they impart. But, make sure you separate the experts from the novices and only listen to reputable sources.
Learn More About How to Flip a House
This should be just the start of your research on how to flip a house if you’re thinking of going ahead.
There’s a lot more to learn, so take the time to educate yourself and trust that your time will be rewarded later on. There are even some online courses that you could take, ensuring you learn directly from an expert.
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