It’s really important these days to have some extra income to be able to weather some uncertain economic times. It’s great to have the extra money, but it can also be something to help get through a period in which you find yourself without a job. Working for yourself is always a good way to go.
Flipping houses can be the exact solution that you’re looking for. It can be done in your spare time and can even lead to a full-time income if you really want to. There are a lot of opportunities to make it work.
In this article, we will go over some of the things you need to do to be a house flipper.
1 – Get a real estate license
The very first thing to do is to go take some classes to get your real estate license. Every state has its own requirements so take a look at what your state is like. It can take a few months so this is why you want to start here first.
While you are taking classes and getting ready for the test to get certified you can do things like set up with a junk removal Orlando company and maybe a contractor if you aren’t doing the renovations yourself.
You can get started without your license by hooking up with an agent, but you’ll be paying them a commission which will eat into your profits. If you don’t mind paying while you feel out the process then this works but it isn’t a good long-term solution.
2 – Do your research
The key thing to making a profit with house flipping is identifying an up-and-coming area that has houses for sale cheap. If you can find an area where there is some gentrification happening then there are lots of deals. Then the home values blow up when things like coffee shops and boutique stores start showing up.
This takes some research into the census data and doing some market research about certain areas. It is not a great idea to go to a neighborhood that has cheap houses but without values trending upward.
The research also involves seeing what types of properties are selling in that area where you think you have a good chance at success. You may be better off buying an apartment to flip if the data shows that’s what’s selling.
3 – Set a budget
After you’ve finished up the research phase then it’s time to set a budget. You can now figure out how much you will need to pay for the type of property you want in the area that interests you the most.
The budget doesn’t stop at what you will pay for the house, however. You’ll also have to factor in what it will cost to renovate a particular property. With these numbers you can get a sense of how much you stand to profit when the time comes to sell.