House flipping can be a tedious process, especially with today’s fluctuating markets. The key is to save as much money possible during the flipping process to maximize the end return. So what are some good ways to save a bit of cash whilst still achieving a quality finish? Here we will look at the top 12 ways to save money whilst house flipping.
1. Buy in the right market
Never buy an investment property during a market high, should a slump occur soon after purchase, the financial fall will be devastating. Buy during a medium to low market.
2. Buy in a great location
Even if the house is a little on the shabby side, a great location can set the benchmark for a rewarding sale. Home improvements can be made which will raise the value of the home over-and-above the added value for location.
3. Get involved in the dirty work
As unappealing as it sounds, tending to the dirty jobs around the property will save you endless amounts of money. Hire your own skip for rubbish removal and do the cleaning, landscaping and general DIY projects like wallpaper stripping and sanding yourself.
4. Hire professionals for the tricky bits
Doing simple jobs around the property will save money, but attempting things like concrete laying, electrical work or building is a no-no for an inexperienced person. Doing these jobs yourself will only lead to extra money spent repairing unfinished or botched work – Put the hammer down!
5. Shop around for tradesmen
Get quotes from several different companies before deciding which to use. Price variations can be huge so be wary of over-marketed trades people. Ask for referrals or testimonials and ensure they are registered workers.
6. Skip the trends
When it comes to renovating a house for resale, avoid spending copious amounts of money of trends. Most buyers want a fresh, clean and modern property and likely wouldn’t notice the extra expense you put into square taps instead of rounded. Stick to neutral and simple decorating.
7. Repair where you can
Check a broken appliance or fitting and consider repairing it rather than buying a replacement. If the unit is otherwise in good condition it might be cheaper to fix it up.
8. Keep the landscaping simple
Giant water fountains and exotic palms won’t increase the value of the property. Stick to tidy and simple landscaping. Well groomed lawns, pebbled gardens and a few modern pots are enough to appeal to the potential buyer.
9. Shop around for DIY supplies
Your renovation supplies needn’t be 100% new, for example quality and tidy wash-house tubs are frequently found at home demolition centers for affordable prices. Look at seconds and end of line paint and carpet ranges.
10. Pay bills on time
Take advantage of any prompt payment discounts for bills and accounts and avoid late fees by always paying on time.
11. Shop around for a real estate agent
Real estate agents take a percentage of the properties sales price and at times this can leave a hefty hole in an investor’s pocket. Shop around for quality and affordable real estate agents that aren’t charging ridiculous fees.
12. Sell during a market high
A peak in the property market is the best time to sell for a maximum profit return. Of course it isn’t always possible to wait for the right time to sell, so take advantage if the opportunity arises.
Author Bio: Jessica is a New Zealand blogger who frequently writes for Propellor Property Investments, Auckland property investment specialists. She is always on the look-out for the latest news in investment property.