It’s no secret that many people turn to good old-fashioned bricks and mortar as a secondary income source. Some property investors purchase residential properties and rent them out to people, while others prefer to buy and sell when it’s profitable to do so.
If you fit in the latter category, you’ve likely already seen a ton of websites that explain how to flip properties. But, they often suggest you do things that cost a lot of money and eat into your profit potential!
The aim of this article is to explain how you can profitably flip residential properties. Here’s what you need to do:
Start With a Cheap Property
When you start your property flipping journey, you need to start small and work your way up. Don’t throw all your cash into buying an expensive residential property because you’ll have no funds available for turning it into a home that someone could move into.
Look at purchasing a small property at first, such as an apartment, and once you’ve flipped it, use some of your profit towards buying a larger property and so on.
Opt for Neutral Tones
Anyone buying an apartment or house wants to add their unique style and design to the property. That’s why it makes sense to avoid opting for specific color schemes or decor styles and instead choose neutral tones for things like paint and flooring.
Another advantage of choosing neutral colors like whites and grays is that such color paints and carpets are generally cheaper than ones in other colors. In short, you’ll maximize your profit potential by sticking with neutral tones!
Ensure That It Is Energy-Efficient
Homebuyers want to know that their future property purchase will help them save money on their utility costs and keep them warm during the winter months.
To that end, you should invest in some insulation for all properties that you flip as insulated homes tend to command higher prices than ones which are not.
Property insulation isn’t cheap, and that is why you should shop around for the best spray foam supplier in your area.
Don’t Sell in a Buyer’s Market
Let’s face it: the last thing you want to do is sell a residential property when the market is against you. Not only will you make a minimal profit, but you’ll feel resentful when similar properties sell for considerably higher prices during better market conditions.
Sometimes it makes more sense to keep a property in your portfolio for a prolonged period before selling it. You could always rent it out to tenants that want short-term tenancies for a passive income in the meantime.
Add Some Curb Appeal
Lastly, you want to make sure that all properties you flip look appealing from the outside. Fortunately, you don’t need to spend lots of money to achieve that goal.
You can carry out simple work like mowing the front lawn, cleaning sidings and paths with a pressure washer, and ensuring everything generally looks clean and tidy outdoors.