The unemployment rate has recently skyrocketed, and even if you aren’t worried about losing your job, then you should be aware that there are tough times ahead. If you have been following the news, and are worried about the state of the economy, then it is understandable that you might want to find another source of income.
After the threat of coronavirus is dealt with, you might consider flipping houses. Although it’s not as easy as some of the articles claim it to be, you could make some money if you don’t make any rash decisions and analyze the situation thoroughly.
How to flip a house?
Although you might have heard that house flipping can help you earn tens of thousands of dollars in no time, it isn’t really true. Sure, you might get lucky and find a house that only needs some basic renovations done and find an interested buyer, or you might hit the jackpot if the neighborhood where the house is located suddenly becomes much more respected. Still, it doesn’t happen often. Okay, so what does that process of house flipping look like?
The first essential question that you should ask, even before you start looking for homes that you could renovate and sell for a profit, is “how much money I can spend?”. Sure, investment property loans could help you a bit, but if you only have $100,000 savings, then you shouldn’t even think of trying to flip houses in the neighborhoods where the average price of a house is $1,000,000.
Even if you get an incredible offer, you will need to ensure adequate financing, and the interest rates on loans could not be the lowest. Still, if you decide to flip houses in the worst neighborhoods possible, then you must be prepared that your house might be broken into or vandalized. That’s why ideally you would start with a house that is relatively cheap but also located in a safe neighborhood, though if you are more ambitious, you could start looking for homes for sale Hilton Head SC. If you intend to make the renovations yourself, then also consider the distance from your home. Otherwise, you’ll spend a significant amount of time commuting.
If you think that your knowledge is extensive enough to ensure that you don’t encounter any issues that you haven’t previously considered, then be prepared to spend a long time looking for a house that you might flip. It will be time-consuming, but still, it would be a bad idea to rely on house flipping as your only source of income. Time wouldn’t be on your side, and you would be eager to agree to even subpar terms. Even though it might be frustrating to later work on the house when you have a job, which means that you’ll be doing it in your spare time, you’ll feel much safer when you don’t have to rush.
Okay, so if you have found a house that you are interested in and you have enough money to ensure that the process goes smoothly, then the next question is, “can you do all the renovations, repairs, and improvements by yourself? It’s important to be honest with this one. If you don’t have the required skills to complete all the tasks, then you can hire a professional to do them for you, though remember that it will increase the costs of the project.
If you could take care of everything yourself, then it would be better, though remember that you should be sure of your skills. If you have any doubts, then relying on someone else would be a better idea. Otherwise, you would risk losing much more money in the long run. If you discover that house flipping is something that you actually enjoy, then with time, you’ll learn on what experts you can rely on.
Once you have found a house that you are interested in, you should create a plan detailing how much you intend to spend on the entire project. Take into account all the costs, but also prepare that the cost of materials could change with time. Depending on the type of improvements, the weather could also make the process more lengthy.
If you need some permits, then your project could require more time as well. It might be an important factor if you have borrowed some money, which means that it would be in your best interest to finish the project as fast as possible. Additionally, don’t sign any deals before you are sure that you have a way of financing the purchase.
Once you have taken care of all the previously mentioned elements, and you already have a house that you want to flip, then it’s time to renovate the house according to your plan. When it is ready, you’ll have to contact a realtor who will help you to sell your house. His knowledge of the markets will help him find customers that will be interested in the house that you have renovated. If you have enjoyed the process of flipping houses, then perhaps in the future, you could get a real estate license.