Flipping a home can be a surefire way to earn yourself some serious cash. But if done incorrectly, you can wind up wasting precious time, resources, and a whole lot of cash for something that just isn’t profitable. There’s a ton of behind-the-scenes planning that goes into the home renovation process that you need to know if you’re planning to dive into house flipping. 

If you want to set yourself up for success in flipping a home, keep reading. We’re going to give you the best advice for beginners interested in flipping a home. 

1. Crunch Your Budgeting Numbers

When you start to play with the idea of flipping a home, it’s easy to want to jump in and find the cheapest property available so you can get started. But you have to pump the breaks! It’s imperative that you start with smart planning and budgeting before you purchase anything. 

Figure out how much money you can reasonably spend on a project. Then, break down the different repairs you may have to do. Don’t leave anything out, prepare for every scenario. 

What will the costs of the repairs be? How much will you have to pay in labor? 

Then, determine a reasonable ARV, or after repair value. Take the current value of the property and add the value of the renovations you’re preparing to make. If you estimate that you’ll wind up making a profit that is worth the effort, you can move on to the next step. 

2. Do Thorough Neighborhood Research 

So you’ve found a house and you think it may be worth it to give flipping a house a shot. But before you buy, do some research on the area that you’re buying in. 

The neighborhood a home is in plays a big role in how much it will be appraised for, which tells you how much you can get for it. What are homes in the area selling for? What are the market conditions, how long do homes sit on the market, and what is the school district like? 

These are all things that will factor into your ARV. 

A good rule of thumb for newbies to the flipping business: buy the cheapest, most rundown house in the best neighborhood you can afford. 

For some more information, consider talking to the people who live there. Visit the area at different times of the day to get a complete picture of what living there will be like. If it feels like a safe neighborhood, somewhere a family could settle down, you’ve got a good location for flipping. 

3. Trust Your Professional Inspector 

A professional inspection costs money and you want to spend as little as possible when flipping a home. But when you compare the cost of a professional inspection to the exponential cost of repairing huge faults in a home, you’ll see that the expense is worth it in the end. 

Issues like foundational problems, the home’s structure, electrical wiring, or roofing repairs by Apply Rite roofing companies in Northern Kentucky, are expensive to fix, and they take a lot of time. Before you put an offer on a home, you need to understand the cost that could go into repairing it. 

When you hire a professional inspector and trust what they say, you’re protecting yourself and your flipping endeavors from large financial commitments for minimal profits. 

If this is your first time flipping a home, start small and get a feel for what the flipping process is like before you do a complete house rehab. 

4. Stick to a Reasonable Timeline 

If you’ve found a home in a great neighborhood that you think you can afford to flip, it’s time to give yourself a timeline. Remember: practicality is key. Anything (and everything) can go wrong when you’re flipping a house, so you have to give yourself plenty of time to deal with any unforeseen catastrophes that pop up. 

There are a few project areas that you should devote the most time, energy, and money to. Kitchens and bathrooms generally require the most funding and time and they’re often the make-or-break areas that people consider when buying their homes. Tackle these big projects first and give yourself the most time and money to get the job done right. 

5. Hire Reputable Help

This tip may seem like a no-brainer, but the allure of hiring cheap, unskilled laborers to get work done on a house flipping project is a pitfall that many newbies fall prey to.

When you hire a sketchy construction crew, you’re taking a huge gamble. Sure, it could go great! But you can also wind up with shoddy work and the need to spend more money to clean it up. 

Hire people who are known in the area for being good at what they do. It may be more expensive, but you’ll have peace of mind that the job is getting done the right way the first time. 

6. Don’t Forget Cleanup Costs

One facet of flipping a home that is often overlooked is the cost of cleanup. There’s a lot of demo that goes with renovating a home, and all that waste has to go somewhere.

Look into dumpster rental services for the things you can’t reuse. A roll off dumpster is helpful for renovating a property so you don’t have to waste time and money making trips back and forth to a landfill. 

7. Don’t Over Do It 

Lastly, remember that every project has a limit. Try not to walk the line between house flipper and interior designer and decorator. Your emotions will start to take over and you’ll wind up spending a whole lot more time and money than you initially planned. 

Remember to design according to the neighborhood. Don’t splurge on a marble island in the kitchen if the rest of the homes in the neighborhood have laminate countertops. You won’t see the return on your investment that you want. 

The Key to Flipping a Home

Ultimately, the key to flipping a home is to be in it for the long haul. You never know what’s going to pop up on a project that will need your attention. House flipping isn’t for the faint of heart! 

But if you follow these steps and keep working towards your goal, you’ll be on the path to success in no time. 

For more home improvement tips and tricks, keep reading!