If you’re looking to make a profit, the art of flipping houses can be a very subtle and intricate one indeed. You’re basically hoping to grab a property at a low value, renovate it for as little money and time investment as possible, and resell it with as large a profit margin as you can manage. That’s not going to be easy, and you’re going to have to put a lot of effort in to make sure your task is completed efficiently.
There are tips and tricks you can learn to make the process of house flipping go easier, though. From time management to financial hacks and everything in between, there’s plenty that you can do to make your time renovating an old property much more painless and smooth. Here are our top tips on the art of renovation and flipping houses for profit.
Thoroughly inspect the property first
Before you make an offer – or, if you’ve already made an offer, before you begin your renovation – you should check to see what actually needs to be done. If you haven’t already made an offer, make sure there’s nothing that’s irredeemable and should get the property condemned. If you’re confident that the house is within your scope, check some of the following items.
Consider your cladding
Cladding is effectively a process by which the walls of a house are protected against the elements and against damage. It’s extremely important for your property to have good cladding, because if it doesn’t then you could be risking fire damage and more. You don’t have to be austere about it; you can use coloured decorative cladding to add a nice personal touch to the property.
Watch out for rot
Dry rot is a fungus that grows on wood and can eat away at the timber of a house’s foundations. While it’s true that dry rot usually isn’t dangerous to humans, it can be fatal to a house’s structural integrity. It’s very important to check for dry rot and make sure it’s taken care of before you proceed with any other aspects of the renovation. If you don’t do this, you might find your efforts scuppered.
Deal with damp
Just like dry rot, it’s possible for damp to occur anywhere in a home. Unlike dry rot, though, this usually happens when a home is improperly or poorly ventilated. If left unchecked, damp can seriously damage your property, so it’s crucial that you get rid of it early if you can. Dealing with damp usually involves making sure the house is well-ventilated and calling in professionals to get rid of mould.
Look for faulty electrical wiring
In old properties, it’s common for electrical wiring to be unsafe. After all, safety standards and protocols have improved exponentially over the last hundred years. If you find that the electrical wiring in your property isn’t up to snuff, it’s very important to fix that, because if you don’t then you could be seriously endangering yourself and any buyers who choose to live there.
Don’t worry if renovation takes a while
It’s common for a house renovation to run longer and more expensive than you planned for in the beginning. That doesn’t mean you can’t carefully craft a time plan and a budget for your project, but it does mean you shouldn’t beat yourself up if you find that you’re running behind schedule or spending more than you should. The bottom line is profit, and if you’re still making money then you’re okay.
Draw up a detailed schedule
At every stage of your renovation project, you should know where you are and why you’re doing what you’re doing. There’s a real art to creating a good to-do list, so if you can master this skill then you’ll find the renovation project goes much more smoothly. Leave space on your list for items that you didn’t expect, because you’ll need to do more than you think to make the property serviceable.
Think about your demographic
Just like in business, you need to identify the end user of your renovation. Who’s going to buy this house from you? This isn’t an easy bit of knowledge to acquire, but you can look at the kind of people who already live in the area to deduce who might want to live there. Once you know this, you can tailor your renovation in certain ways to appeal to those people and therefore make more profit.
Know the value of your home
Once your renovation is complete and you’ve done everything you set out to do, you’ll need to put a price on the property. It’s a good idea to work with local estate agents to do this, but there are steps you can take by yourself. The important thing here is not to over- or under-value the property. You don’t want to walk away feeling cheated, but you do want the property to actually sell!
Take it step-by-step
You might have a grand plan for how the renovated property is going to look, but it’s important to break it down and focus on day-to-day tasks. If the property doesn’t end up looking the way you think it should, that doesn’t have to be a disaster; you can amend your proposed project outcome so it reflects new developments. In the end, the project will deviate from your plan, and that’s okay as long as you take it slow.