How To Make The Most Of Your Budget When You Flip A House
Flipping a house doesn’t have to mean spending thousands of dollars more than you initially budgeted for; the trick is to spend your budget wisely, and prioritize projects based on practicality. For example, it wouldn’t be practical to invest your entire budget in pricey hardwood floors if the home in question needed other updates in order to be compliant with today’s building codes.
Rather than cutting into your profits by overspending on updates, you can save money on your flip by investing your funds strategically.
7 Tips For Flipping A House On A Budget
1. Choose A Desirable Property
As you’re scouring the market in search of the perfect house to flip, be wary of tunnel vision; rather than focusing only on the houses themselves, carefully research each neighborhood where you’re thinking of potentially investing. If the home looks beautiful, but the neighborhood offers a poor quality of life, you may not earn the ROI you’re looking for.
2. Have The Property Inspected
Before you even purchase the house, hire a professional home inspector to help you identify areas of concern. From there, you can start making a list of repairs the home needs, so you can determine the best way to spend your budget.
Again, before you begin any work on the house, you want to find out how your buyer would see the property.
3. Invest in Qualified Professionals When Needed
DIY projects are a great way to save money, but large or complicated tasks you aren’t qualified for should always be left to the professionals. Attempting to take on a project beyond your means could end up costing you more in the long run, as you still may find yourself hiring a professional.
For problems related to the home’s plumbing, electrical, or HVAC systems, take time to research the most trustworthy names in your area.
4. Use Affordable Materials For Cosmetic Upgrades
Unlike plumbing or electrical repairs, you have some control over the cost of cosmetic upgrades when flipping a home. If the property isn’t a luxury home, there’s no need to splurge on high-end materials.
Try to work with the materials already in the home whenever possible. Old cabinets can be refaced, dingy tile can be regrouted, and worn out hardwood can be resurfaced. Only purchase new materials when it’s absolutely necessary, and make sure to choose styles that won’t break the bank.
5. Stick To A Neutral Color Palette
As tempting as it may be to choose materials or designs that reflect your own personal style, you’ll appeal to more buyers if you keep the design neutral. Avoid bright or dark paint colors, opting instead for earth tones and off-whites that will easily complement furniture and other decor.
Remember, there’s nothing buyers appreciate more than a home that already fits in with their style!
6. Stage With Second-Hand Furniture
If you want to sell a home quickly and maximize profits, you absolutely need to stage, but hiring a stager isn’t always necessary.
Keep in mind, not every room requires staging, so you’ll need to just focus on the home’s biggest selling features: the living room, kitchen, dining area, bathrooms, and master suite. Shop at local thrift stores, flea markets, and even Craigslist to find low-cost furniture and other décor that can be touched up and used for staging.
Your buyers may even surprise you and increase their offer to buy the home furnished.
7. Be Vocal About The Work That Went Into The Home
When you’re ready to list the house for sale, don’t hesitate to mention all the work you’ve completed. Buyers appreciate information about the most recent work done on a home, and knowing that you’ve already taken the time to fix problems they would otherwise face gives your buyers peace of mind.
Are You Thinking About Buying A House To Flip?
Now that you know how to stretch your budget, you’re ready to start flipping homes like a pro!
Make sure you check out our nationwide inventory of low-priced homes for sale. We offer additional discounts to cash buyers, so you can earn an even higher ROI when you buy through us.
For more information about buying from CastleRock, please contact our friendly team today!