To make sure your project goes smoothly, you should stick to this House Flipping Checklist.
Perhaps the most intricate and time-consuming part of flipping a house is the rehabilitation process. Rehabbing a property is essentially what is going to turn you a profit, and should not bet taken lightly.
When working on your flip, you should always be sure to complete this house flipping checklist. If you miss any one of these essential steps, you could find yourself in a world of trouble. This house flipping checklist will provide you with a methodical approach so that you will never go in blind.
House Flipping Checklist: #1. Make A Budget
While some people might simply enjoy house flipping, generally the most important motivator in this field is profit. If you hope to make money, you must make sure you donâ€™t spend more on a home than you can afford. A simple way to make sure you donâ€™t overspend on Rehab is by making a budget.
Donâ€™t wait until after youâ€™ve already purchased the property to make your budget. You should decide on your maximum rehab costs while you are negotiating with the seller. You need to know these expenditures so that you can subtract them from the ARV, or â€œafter repair valueâ€, of the home to determine whether the property is worth purchasing.
After you complete steps #2 and #3, you can break up the budget and decide how much you are willing to spend on each part of the home improvement. Certain renovations will have more of a fixed price like a septic repair or a plumbing fix. However, other improvements can vary in price. For example, your house might need new flooring. There are dozens of different types of floors with costs at all ranges of the spectrum. Your job is to decide how much you want to allocate toward the different areas of the property.
House Flipping Checklist: #2. Determine What Needs To Be Improved
In the world of house flipping, there are always more ways to renovate a particular property. Unfortunately, you need to respect your budget so that you can turn a profit on the house. Below are some of the more important pieces to consider...