Many people often dream of launching a big brand to increase their bank balance and secure their financial future. However, you don’t need to run a complex business to generate a high annual income.
With a little investment and real estate know-how, you could boost your bank balance by fixing up and selling properties for a profit. If you’re unsure how to do so, find out how to flip a property in 2020.
Choose the Right Neighborhood
To maximize your profit margin, you must find an unloved property in a desirable neighborhood.
To do so, you’ll need to look for rises in:
· Real estate sales
· Public transport links
· Employment growth
It’s wise to pick a location that offers good schools and excellent public transport links. Review whether a neighborhood has many properties up for sale. This could be a sign of a poor local economy or a high crime rating.
Pick the Perfect Property Type
If you’re looking for a property that will attract many buyers, you’d be wise to flip two- or three-bedroom houses in an up-and-coming or popular neighborhood. While a sixth-floor apartment might eventually attract a property seeker, you’ll be more likely to take your pick of buyers when flipping family homes. As a result, you could receive a great offer, which you can add to a savings account or reinvest into flipping another home.
Focus on a High-Quality, Affordable Renovation
It is crucial to undertake a high-quality renovation of an unloved property to enjoy a higher return. For instance, you might need to strip out an outdated kitchen with a fresh, modern installation. You also must make the appropriate repairs, such as fixing a roof, switching broken doors, and replacing windows.
Don’t spend too much on the renovation to protect your profit margin. For instance, if you buy a home for $100,000, you could invest $20,000, so it sells for $150,000. Consequently, you could earn a profit of $30,000.
Find affordable project supplies from the likes of Lowe’s to reduce your overheads. You could even hire one of their qualified professionals to complete a project on your behalf, which is ideal if you’re not confident with DIY. Plus, you could save on a project with a Lowes coupon code.
Factor in Various Fees
There are various fees you must consider before you flip your first property, such as:
· Mortgage payments
· Private mortgage insurance
· Closing costs
· Renovation fees
· Survey and appraisal fees
· Real estate agent commissions
· Escrow fees
By factoring in the above costs, you can create a realistic budget and avoid unexpected bills.
It is imperative to weigh up the pros and cons of flipping a property to ensure it is the right financial avenue for you. To enjoy great success, treat the project as a business. If you can make informed decisions, create a realistic budget, and find ways to reduce your outgoings, you could enjoy a fantastic return on your investment.