6 Tricks of the Trade for San Fernando House Flipping
It seems like the perfect setup: find a foreclosed fixer upper, buy it cheap, fix it up and sell it high for a big profit. Sounds easy, right? Well, yes and no. While San Fernando house flipping can be profitable, there are also a lot of other factors that the TV cameras don’t show you.
Considering getting into the San Fernando house flipping business? Here are six tricks of the trade for San Fernando house flippers.
Avoid Your Own Tastes
Sure, you may like carpeted floors, but that doesn’t mean every home buyer will feel the same way. When flipping San Fernando houses, you have to go with designs that are in the highest demand. Some flippers personalize their houses with designs that only they like, but all that means is they’re usually sitting on the property for a while.
Look for the best fixes and upgrades that people in the area seem to want to buy. These will be the upgrades that get people in your door on open house day.
Try for Instant Equity
You want to go after San Fernando homes that are priced below what the market dictates. This is how you build equity. It allows you to buy the home, make your repairs and upgrades and then resell the home without having to wait for the market to catch up. Essentially, you’re catching up with the market, not the other way around.
Location, Location, Location
No matter how nice a house looks, its location will always matter more than inside and outside appearances. A nice home in a bad neighborhood will never sell for as much as the same type of house in a good neighborhood.
If you’re looking for foreclosed homes, look for places where people are moving to. Avoid busy streets and bad neighborhoods where people want to avoid.
Do Thorough Inspections
On the outside, a home may look like it’s in good condition, but when you open the door, you might see a whole other side of the home. Some of the biggest problems that house flippers miss come from not getting an inspection before buying. These problems usually include infestations, cracks in the foundation and unpermitted add-ons or repairs.
These upgrades and repairs can become costly, and they can eat away into your profits. Before you buy any home with the intention of flipping it, you should get an inspection so you’re at least prepared for what you’re getting into.
Work with Professionals
If you’re thinking of cutting costs by doing all the home repairs yourself, think again. Unless you’re general contractor yourself, you shouldn’t be doing all of the repairs by yourself. You’ll still need a professional team to help you upgrade all aspects of the house.
Cutting corners with repairs means you’ll cut corners with your price when you sell. Get several bids on your home and go with the contractor with the best overall value. Once you see how nice your home looks, you’ll have buyers begging to see it.
Plan for the Worst
San Fernando house flipping isn’t always a stable market. Sometimes a house has more repairs needed than you thought. Other homes sit on the market for weeks at a time.
These problems can happen to any flipper, so make sure you plan for the worst. When you’re prepared going into a flip, you’ll be less affected if you have to take a loss.
Buying and flipping houses can be lots of fun, but make sure you know what you’re getting into. Always work with professionals who will help you along.