Maximize Profit On Your House Flip

3 Ways To Maximize Profit On Your House Flip

Oklahoma has proven to be a great market for flipping homes. Bin There Dump That assists investors every day with roll-off dumpsters, helping the process go smoothly and quickly for the best return. If you have ever considered this real estate venture, these tips will help with the success of the project. 

Choosing The Property

Of course the goal with flipping a property is to make a nice profit. After establishing financing, finding a property with the best potential is the most important step. So many factors go into this decision. Of those, location is at the top of the list. Is the property in a safe area or neighborhood? Is it located within a good school district? Many buyers insist on both of these. Another factor in the best profit is the neighborhood or area being popular in revitalization? Are people moving BACK to that area? Current popular areas experiencing revitalization is Gatewood, Midtown OKC, Mesta Park, Nichols Hills, and the Plaza District.

There are other things, besides location, to consider when choosing a property. The most successful flips yield the most profit. The ideal property has minimum repairs to be done. Structural damage, rewiring, and plumbing are the costliest repairs. A hone with just the need for cosmetic updating is not only the quickest to flip, but generally, the least expensive with out-of-pocket. 

Hiring A Contractor

Having experience in remodeling can be a money saver if you want to go the DIY route. There is also a benefit to hiring a contractor. A contractor cannot only free up your time but the perfect candidate will have many trusted subcontractors to do the work. A good contractor can also save you money with the rates they have established with their subcontractors. 

If it is your first time to hire a contractor, the points to remember are to ask friends and family for recommendations. Also, It is important that a candidate meets you in person and provides references with details on prior work done. They should not be late, or reschedule the appointment several times, because their skill is time management. Be sure to check out sites such as the Better Business Bureau or Central Oklahoma Home Builder's Association to confirm your contractor is local and properly licensed. 

Smart Repairs And Renovation

Knowing what repairs cost and what improvements will help on selling price is preparation that is invaluable for flipping a home. This is especially important before you make an offer on a property and if you plan on doing the repair work yourself. 

A good rule of thumb is to estimate an extra 20% to the cost of repairs, allowing room for unexpected delays or problems. While the bigger repairs such as mold, structural issues, and rewiring should be avoided, some repairs will need to be done in almost every flip. 

In addition to repairs, the updating of a house is the best plan for a quick resell. Improvements such as flooring, lighting, paint, and fixtures can transform a property. The kitchen and bathroom styles change quickly, so updating is a must for potential buyers. Save money by refinishing good cabinets and saving working appliances.