Think you’ve found “the one”? Spotting the perfect fix and flip isn’t always love at first sight. But, you need more than a feeling of confidence before investing in a property. Part of being successful in this industry is identifying the best homes and taking advantage of them before your competitors. Luckily, there are a few ways to determine which fix and flips are most lucrative. We share them below.
Stable Community, Good Schools
Some house flippers focus only on the property but don’t take into consideration the neighborhood. Doing this can land you with a nice property in a bad location. While your competitors are focusing on the home, do a quick check on the community. What are the schools like? Are foreclosures common? Is there a lot of demand? Are property values rising? Even people without kids tend to buy in good school districts.
Modern, Updated Floor Plan
Homeowners are picky about their floor plans. Today’s layouts are typically open with high ceilings, large windows and kitchens built for entertaining. By investing in a home with a desirable floor plan, you will appeal to a wider audience. This, in itself, will sell the home faster.
While you’re doing some digging on the neighborhood, also inspect what’s around the home. Things like power plants, landfills and even messy neighbors can make it hard to sell the property. On the other hand, there may be features that will make selling the home easier. Homes located close to downtown areas and near transportation sources are typically more favored.
Built after 1978
It’s possible that the older home you’re considering has lead-based paint. This would require you to follow the Renovation, Repair and Painting laws governed by the EPA. The laws aren’t necessarily difficult to follow, but they can complicate the renovation process. You’ll also need to document the process for audit purposes. To save yourself time and money, stick to properties built after ‘78.
Resale Value will Fall in the Middle
How much will the property sell for once it’s fixed up? You don’t want it to be at the top or the bottom. Ideally, it should fall in the middle. This way, the home will appeal to a wider demographic and hopefully get sold faster. If you have the most or least expensive property, it will appeal to a smaller group of buyers.
Finding the right investments is always part of the challenge! Be sure that you look beyond the house itself to consider what type of return you can expect. For financial assistance with purchasing a fix and flip property, call First Equity Funding today.