Thinking about flipping houses as a way to make money? With Florida ranking in the top ten house flipping markets in the country, now could be the perfect time to fix up and sell an old house. With that said, house flipping isn’t something you should blindly rush into. Without knowledge of the market, patience, and a solid investment strategy, your flipped home could quickly turn from a golden egg to a money pit. For this reason, we recommend avoiding the following mistakes:
1. Not having enough start-up funds
Underestimating your start-up expenses can negatively impact your profit margin and cause your project to potentially fail. Along with the buying costs associated with the home, you should also factor in the following expenses:
- Fees associated with selling the home.
- Taxes, insurance rates, maintenance expenses, utilities, and repair costs incurred while owning the property.
- Financing fees (if you don’t have enough cash to buy the home outright).
As a general rule, most experience flippers recommend adding 20% of the home’s selling price to your budget. That money will be used to cover most, if not all, associated fees.
2. Not knowing the housing market
Market trends come and go. What was yesterday’s hottest neighborhood could become tomorrow’s old news. For this reason, you should always work with a real estate professional who enough experience buying and selling homes in your market. That way, they can tell you whether you’re making a solid investment or setting yourself up for failure.
3. Not dedicating enough time to your project
People who flip the occasional home in their spare time tend to forget just how much time needs to go into getting the home ready to sell. Along with purchasing and restoring the property, you need to allocate time to scheduling inspections and completing any necessary paperwork. And while you can save some time by contracting artisans to do the renovations, you still need to factor in the time it takes to hire plumbers, electricians, carpenters, and so on.
And after all that’s said and done, you still have to meet with interested buyers.
Getting the most out of your investment
Now that we’ve covered the basics, still interested in flipping property?
Let the Edge Group at Keller Williams help you along the way. Their experienced agents are happy to assist you with the buying and selling process, so that you get the return on investment you’re looking for. What’s more, the Edge Group has a team in Orlando, Tampa, Jacksonville, and Ft. Lauderdale, giving you access to some of Florida’s hottest markets.
Contact the Edge Group today to get started!
If you’re looking for Off Market Investment opportunities visit www.teginvest.com