While it may not be as huge as it once was, home flipping is still a big business in Austin and across the country. Especially with a real estate market that keeps going, although a bit slower than a few years ago. The lack of available homes means flippers can reap a nice return of investment (ROI) if they do it right.
Not going in blindly
This means not going into a flip without some knowledge and skill. Without either, the potential for avoidable problems increases. In turn, The ROI falls or becomes non-existent. Furthermore, you decide to turn your attention elsewhere.
To avoid this, here are three things to consider before flipping a home.
1. Do you need someone to look contracts over?
Just because the home you want is owned by the city or county doesn’t mean you still shouldn’t review their agreements. This is where groups like Bukowski Law Firm come into play. They have attorneys who are subject matter experts (SMEs) when it comes to real estate law. Thus, they can help you smooth out the right agreement.
2. Is the property a viable investment?
Yes, the cost may be right up your alley. However, once you renovate the property, will it be like the rest of the street? Or, will it shine in an area that’s still a bit tarnished?
If that’s the case, you may not get the ROI you desire because you have to lower the price. Therefore, before you sign anything, look around the neighborhood.
3. Do you have the right budget for renovations?
If you’ve seen any home improvement show you know the unexpected is expected in a flip. And that means extra money needed for tear-downs, build-ups, or extensions. Have you factored those numbers in?
If not, list all of the potential and common issues you may encounter. For example, the discovery of termites or water damage. Then, estimate the cost of those repairs. Once you figure that out, you’ll have a good idea if you should proceed or hold off for a bit more.