Have you ever wanted to flip houses to earn some extra income? Renovating a house can be a fun and reward experience. You will learn in this artificial what it takes to make a great profit in real estate.
The idea of Renovating houses has grown over the past few years, partly due to reality TV shows and partly because more and more people have fallen in love with the idea of getting their hands dirty, doing the work and (if all goes well) turning a great profit.
Before you dive in head first, you should make sure you understand exactly what you are getting into.
Know Your Market
Knowing your market when purchasing real estate to renovate is the most important part. You need to educate yourself on your local real estate market before going out and buying your first Renovation project.
Important Factors to consider:
- How fast is the average nice house on the market for before it sells?
- How much are similar houses going for in that neighborhood?
- Whats the city like? good or bad?
- Location? is the house located in a nice cozy neighborhood or next to a loud factory or busy road?
Know Your Numbers
Do you know what an ARV is? This is the value of the home after repairs and upgrades have been made. You need to figure out this number by studying the market and working with a contractor who can accurately price out what it will cost to fix up the home.
You will also need to factor in the time it will take to complete the work and sell the house. While you are the owner, you will be the one responsible for the taxes, utilities, the mortgage (if you have one) in addition to the costs of materials, labor and so on.
Know Who Your Buyers Are
What is the demographics in the neighborhood? Are there families, retirees, outdoor lovers or students in the area? What will they be looking for in a home?
You will want to buy a home that that has features your leading demographic is looking for.
If you have young families buying in the area, focus on creating an open family room or finish the basement. If you have retirees, make the house easily accessible and the yard low-maintenance.
Price To Sell
Simply be realistic with your price point. If a house that has similar updates sound in the past 6 months use that as a comparable Property to see roughly how much you should list your house at.
Are you ready to turn a profit Renovating property in Minnesota?
If so, it is important to spend time thoroughly educating yourself and making sure you are aware of all market factors that will be involved.
If you are new to flipping and real estate investing make sure you work with a professional who can guide you through the process so you don’t end up losing a lot of money!