Making Money With Flipping Houses: 5 Considerations

Thinking about purchasing a property to renovate and sell for a profit? Here are five things to consider before browsing property listings or hitting the auctions. 

Consider the street and area

A beautiful property is all well and good, but if it’s the best house on a bad street then you’re going to limit your profit potential. Look into area statistics including crime rates, rates of unemployment, owned vs rented houses and other factors to help you decide if to purchase the house you’re planning on renovating, and if so how much you’re prepared to pay for it. 

Take any outside space into account

Some properties need outside space to make them worth taking on. If you’re renovating a family home for example and the garden is tiny, it doesn’t matter if you do an incredible job, you’ll never make the best profits as most families will want a garden. In other cases, you’ll need outside space to be able to extend to be able to do the work you need to do. You might have found a great house but think about what the space surrounding it is like and if there’s enough for you to make good profits and do what you need to do in terms of extensions. 

Weigh up all of the work that needs to be done

It’s so important that you don’t underestimate the work that needs to be done, as this will hugely impact your budget. Making a profit on properties means a careful balancing act of spending the right amount to cover your costs while still earning money. Have a survey done so you can find out if there’s any problems lurking beneath the surface that you’re not able to see. Have tradesmen come and give you quotes on all jobs and compare prices so you know you’re getting good deals. Don’t forget to look into government incentives such as solar power and insulation for some jobs, and any tax advantages too which can give your budget a boost. 

Add finishing touches

Add a few props for viewings to showcase the rooms to their best potential. A couple of plants, a mirror, a vase of flowers and a rug can go a long way in showing how the room can be set up. If you walk around a showhome you’ll get ideas about how the rooms are put together to entice and excite buyers and make them want to live in the property. Adding curtains and simple light fixtures rather than showing a completely empty shell of a house can make all the difference. 

But don’t decorate to your own tastes

It’s easy to get too involved in a property you’re renovating, so when it comes to the decor it’s crucial to take a step back. Instead of considering what your personal preferences are, think about what buyers are going to want. What sort of colours and shades will make the rooms look as big, bright and spacious as possible and ensure the property looks homely without being too personal looking. Most landlords choose magnolia as it’s light, bright and adds some warmth, any light neutral could work well with grey being another popular choice. The same applies to flooring, go with neutral carpets or wooden flooring that most people will like. Avoid bold colours and heavy patterns since these can be distracting and put buyers off.