House flipping. While not an obvious way of making income, it is considered by many when they begin investing in real estate. It takes a bit of elbow grease, but it is a way of making income in the property world. Leasing property is a long-term investment and as such, it may take a while before you make back the initial investment. With flipping properties, depending on how much work is needed and how long it will take, you can see a profit as soon as you sell.
Naturally, this process comes with a lot of upfront costs, and what you spend on the flip will mean less in return. So that you can maximise your potential profit from your house flip endeavour, here are three ways you can save money.
1. Plan ahead
There is a lot that goes into renovating a home and with certain projects, a lot of hands as well. With any complicated project that involves a lot of funds, you need to have a solid plan. Start with a thorough inspection of the property. A Brisbane property valuation service can help here. From there you can set a timeline and a more precise budget for what needs to be done. Ideally, this would have been started before you had finalised the purchase of the property.
How this helps – this is vastly important in saving the project from getting too chaotic or out of hand. It is easy to make costly mistakes while renovating or letting projects drag on for longer than necessary. The age-old expression, “time is money” rings true when you are house flipping. With the market changing at the drop of a hat, any delays in putting your flipped house for sale could leave you with a vacant house for longer than you planned. You may even miss out on selling your house at a more opportune time.
2. Be quality conscious
Quality is everything. It can mean a great difference in price for labour and materials, durability, and the market value of your flipped house when it comes time to sell. This does not mean that you need to spend a lot of money on the most expensive items for good quality. There are many ways to save on your materials, which include buying in bulk and buying discounted items.
How this helps – The bulk of your spending when it comes to flipping, especially as a D.I.Y. flipper, is materials. Good quality materials, when used correctly, will mean better quality work. The last thing you want to see is your hard work falling apart not long after you’ve finished. This will mean having to redo your work properly, sometimes with the help of a quality contractor.
3. Learn to negotiate
Renovating a house, even as a DIYer, is never a cheap process. You will be spending money at every step. From buying the property itself to all the materials, there are plenty of chances to save with the help of negotiating. It will take some practice as well as a lot of confidence, but it is well worth it in the end. If you want some added help in negotiating the price of the house you want to flip, we recommend getting in touch with a residential valuer service.
How this helps – Every discount you can earn, means you have more money to spend elsewhere. This is incredibly helpful when unexpected issues arise, and your contingency fund has been spent. What you save on each aspect of your renovation may be small, but it adds up to more profits in the end.
If you are interested in seeking a property valuation service to help you with purchasing a house for flipping, call one of our experts today.