Flipping Houses For Profit

I know after watching the block it has sparked my creative side and made me want to renovate a home, even though I have no trade skills what's so ever. Who is that to say that we cant flip houses for a profit. 

What is house flipping? 

Moving homes is an investment approach that usually involves buying a low-value property, renovating it, and then selling it for a profit. The goal is usually - at least in principle - to complete the process quickly and make as few repairs as possible to maximize profits before moving on to the next flip. When you factor in the investment of finance, time and spirit that can be involved, a home renovation may not be for everyone. But for some aspiring Australian investors and innovators, the challenge and potential profits are a significant motivator. If you are thinking of taking a renovation project for profit, there is a lot to think about: finding the right property, funding it, renovation costs and more.

You decided to take the first step in your house flipping journey which is great! I have compiled a list of tips to ensure you can minimise your mistakes. Just remember, mistakes are always made and it can be a great learning curve.

Tip #1 Do you research and calculate all costs before starting

Before you buy a property for flipping, calculate the total cost of your renovation. You will deal with a variety of costs, including content costs, merchant, planning permission, and old material costs. This is the most obvious price. You also need to consider the cost of renovations, and you will not be able to hire a tenant when working on the property. Therefore, the property will not generate any income. If the estimated cost of renovations with the purchase price of the property exceeds what you would expect from selling it, it is not worth it. Go to another property instead.

Tip #2 Read as much about house flipping before getting started.

Making a quick decision can often be a bad decision. Don't rush to buy real estate, especially if you're new to real estate flipping, as this seems like a good opportunity to make big profits. Before we can move on, we need to educate ourselves about the process of remodelling and the right way to turn home. This requires a deep reading to learn about the types of refurbishments that will be most profitable for you. You also need to be aware of the challenges in front of you in the House Flip project. You can rely on a flipping expert, or even take a home flipping course to improve your knowledge of property flipping.

Tip #3 Follow The 70% Rule

The 70% rule of house renovators is that you should not pay more than 70% of the repaired value of a property to buy it initially. This will help ensure that you are making a profit even after the necessary renovations. To make a profit, calculate 70% of the "After Repair Value" minus the cost of repair / renovation to determine the maximum price you should initially offer for the property. That way, your profit should be around 30% of the home's sale price.

The best loan for real estate sales depends on your individual needs and goals. However, if you are looking for the lowest payment, the best option is an interest-only loan. As you can see, there's a lot to learn and consider before jumping into the first House Flip. Investing For Life hopes you have a successful first house flip.