Flipping A House - Be Ready For Anything
Over the past few years, most people have probably fantasized about flipping a house. I mean, how tough can it be? Just buy a place that needs some work, either pay some guys to fix it up or do the work yourself, always being sure to concentrate on the kitchen and baths, and sell it for a big profit, maybe as much as we make in a year or two at our jobs.
Of course, we'll be careful not to make some of the stupid mistakes that we see the people on TV make, right? It's pretty obvious what's going to happen at the beginning, when the voice-over guy emphasises certain decisions by the flipper in an ominous tone, or Kirsten Kemp advises the prospective real estate developers to consider changing a part of their plans and they blow her off. We just know that's going to cost them in the end!
Unfortunately, there won't be a voice-over announcer during our flips (if you begin hearing voices during the process, you probably should take a little break), nor will Kirsten be knocking on our door to give us friendly advice. The decisions may not seem so clear cut when it's our money and time on the line.
But don't think that we're dead set against you becoming a house flipper. Quite the contrary. Our point is that you have to keep an open mind as you move through the process. Try and make all the best decisions at the beginning, but be ready to shift course if need be. You never know what you're going to find as you delve into the renovation, and unexpected problems can have a big impact on your plans. You may find that knocking out that wall so that you can impart an airy open feel to the house is going to require major unanticipated structural work. So what seemed to be a no-brainer regarding cost versus return now becomes an iffy situation. Will the improvement actually add as much value as the investment required? Or maybe your budget is $40,000, but you discover that there's hidden damage to the foundation that will require $10,000 to fix. You have no choice but to repair it, but now you need to decide if you'll eliminate ten thousand dollars worth of upgrades, or if you'll just add that amount to the budget even though the foundation repairs will add nothing to the final price. Flipping a house can be a great way to make excellent money on an occasional basis, or, if you find you're suited to it, a very profitable full time business. Just make sure you're ready for whatever it throws at you, and you'll increase the odds that you'll come out of it with both a profit and your sanity.
|
