What You Should Look For In A Potential House Flip
House flipping can be a lucrative job/side-gig, but knowing the right house to choose is crucial to the success of the project. Listed below are things you should look for in a potential house flip that will yield the best results.
Consider The Location
It’s no secret that nothing determines the value of a real estate property than a location. Consider the city it is in, and then break it down further to the characteristics of the neighbourhood (i.e. busy street, young families, etc.). Positive factors such as malls and easy access to public transportation will increase the value of the property, while negative factors include close proximity to the airport, with a higher chance of noise pollution.
Choosing a property to flip is centred around understanding the property and where it is located and to do this, considering who your potential buyers maybe can help you determine if it will be a good choice or not.
For example, if a neighbourhood is populated by young couples, then school becomes less important, but if it has young families/growing families, schools move up to the top three requirements. Putting yourself in your buyer’s shoes allows you to determine whether the property will sell or not solely based on where it is located.
Size of the Property
Look at the structural composition of the home and how it compares to other homes in the area. A house that is 2,200 square feet in a neighbourhood with homes that are 1,700 square feet will have a hard time selling as it may be too expensive for the neighbourhood, meaning you have to take a major financial cut. The property should be in a similar square footage realm as other houses in the neighbourhood.
What Are The Numbers
How much will it be for the property? How much will renovations cost? What is the expected resale value? How much It is usually homes that need the most work that sells the fastest, but you should always know how much you can/willing to spend on the flip.
Tip: Only do renovations that will add value to the home and skip the things you just find aesthetically pleasing.
The Lot
The most popular and preferred lots are rectangular/square with equilateral sides. Many people are turned off by irregularly shaped lots and will make the property harder to sell.
Don’t Buy a Unique Home
Unique houses may be an interesting project for you, but it won’t be an easy sell. If your plan is to take a unique home and conform it to the standards of the neighbourhood and you’ve taken the price into consideration, then go for it. However, if a post-flip it is still a unique home, you may want to reconsider. Commonly built homes may lack originality, but they sell the fastest, and in the house flipping business, time is money.
