House flipping is an extremely detail-oriented and competitive line of work. Every part of the job has to be completed with the bottom line in mind. Although there are success stories of people going in without much training, it’s often encouraged that people should get some carpenter and handyman activity before trying to take on this project. If you feel like you’re ready but need to make sure you check every box first: here’s how to become a house flipper.
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Make Sure You’re Mentally and Physically Prepared
This job is one of the most draining you can pick. Whether you plan to live in the house until it’s completed, or you’re just driving in for the days:, you may have a hard time parsing out how much time to spend at the property while working on it. As a flipper, for at least your first few homes, you may have to take on a lot of the work you can’t hire for. This plan means having to peel wallpaper, paint, tear up old carpet, take down walls to open the floorplan, work on the plumbing, and more. It’s an exhausting job for one or two people to take on, and it will leave you drained and questioning if it’s worth it. You have to be sure you’ll be ready for it before it happens.
Ensure That You’re Financially Prepared
Long before you should start Googling “What is my home worth?” you should be looking at what you can afford. How much home could you buy while still budgeting for all of the repairs and updates you’ll want to put into the house? Take the time to plan out your budget, and seriously consider if taking out loans on this home will be worth it.
Start With A Smaller Project First
Although we all love to be ambitious and dream of a significant return on a home, start with a smaller project. Instead of going for a house that needs a ton of costly repairs and intense updates, go with something more easily achievable first. Pick a home that could benefit from a kitchen update, and possibly a carpet and paint update- and that’s it. Your first home shouldn’t have you diving into the plumbing and replacing siding unless you’re familiar with those. Give yourself a space to grow from and learn.
Try To Sell Within The Same Year
There are plenty of reasons why you should aim to sell your home within the same year that you purchase it. One of the top reasons is that this practice helps you avoid paying property taxes for two years and writing off your deductibles will be easier to do since it’s a one year project. Another reason is to avoid trying to game the market. If you’re always waiting to get the housing market right where you want it, you’re wasting money on staging, electricity, and maintenance. Once the home is complete, it should go to market at a price that values the work you put in.