Did you know that El Paso, TX is one of the most affordable places to live in America? For investors, that means one thing: a house-flipping opportunity.
Now, house flipping isn't as easy as HGTV would have you think. Buying a rundown home and flipping it for a huge sum doesn't happen too often. With careful planning, though, making a profit is certainly possible.
Want to give this property investing strategy a shot? Start by taking a look at these five time-proven house flipper tips!
1. Invest in Peace of Mind
Before buying a property, get a professional to inspect it. Otherwise, you could miss a major defect, such as a faulty foundation. An inspection will set you back far less than repairing structural issues.
Another thing that can bring you peace of mind is getting a building permit. Cutting corners could lead to fines and lawsuits. Plus, many banks won't make loans on homes that don't abide by Texas building codes.
2. Get Professional Help
Don't get too enthusiastic during the renovation process. Painting a wall or replacing carpeting is DIY-friendly, but leave major repairs to professionals. This includes bathroom remodels, room layout changes, etc.
Other types of professional help can be useful as well. For example, if you're buying a new house, hire a real estate agent. They will help you make the most of the incentives offered by developers.
3. Have a Plan in Place
Every fix-and-flip project requires putting together a budget. By tracking how much you spend on each stage, you can ensure your project is going well. Adjust the line items as needed and leave some buffer in each category.
You should also have a plan B for when things don't go well. For instance, what will you do if home prices in El Paso take a dive after you buy one? Some options include owner financing and renting the house for a while.
4. Know What to Expect
As experienced real estate investors know, the flipping market is volatile. As such, you don't want to put all your money on a fixer-upper. Until you've successfully flipped a few houses, try to diversify your investments.
It's also worth checking your expectations. As mentioned above, not every house flipping project is guaranteed to make a profit. That said, you can increase the odds of that by hiring a reputable real estate company.
5. Secure the Job Site
House flipping sites tend to be easy to notice from the street. As such, it's worth protecting it from bad actors. This includes changing the locks on any house you buy and locking doors before leaving the site.
For best results, invest in a security system as well. Any instance of theft can lose you valuable time. Even if the insurance company covers the cost of stolen tools, you won't get that momentum back.
Follow These House Flipper Tips
The bottom line: house flipping is about doing quality work quickly. Once you get the hang of this balance, your profits will go up as well. The above house flipper tips are a good starting point for any interested investor!
Looking for professional help with house flipping? Our real estate experts at PMI El Paso can help you with every part of this process! Contact us here to learn more about our services!
