House flipping has always been a popular way for new investors to dip their hands into the housing market. Around 5.1% of the housing market is comprised of investors who house flip. The act of house flipping is an easy one. It’s a form of investment that requires purchasing a house before making the repair needed to increase its value, then selling it on at a profit. There are two types of house flipping, and this is just one of them. The other type will purchase a house, wait until the market changes, and sell it on at a profit, whether they make changes to the home or not.
So, if you’re thinking about investing in house flipping, here are tips on how to add value to your investment.
Repair The House
While it is possible to make money if you sit down and wait for the market to drop, you won’t get very far with that just yet. Buyers are more likely to purchase houses that have work done on them than ones that don’t since it means once they buy it, any home repairs that are needed will be taken care of already. Fortunately, most homes have many repairs that need to be done, such as replacing their windows, replacing the roofing with the help of a service similar to Metro Roofing and Remodeling, and covering the house with a new fresh coat of paint. All of this can increase the value of your property.
With that in mind ensuring that you research the right property is just as important. The last thing you would do is buy a house that has no resell value or get stuck with a house that needs several extensive repairs before you can sell it on. Instead, make a plan of how much you want to spend and make a budget that will fit the list of repairs that you need to do. This can help you to have an idea of what you may be able to handle and prioritise repairs that will add the most value to your investment.
Join a REIT
One of the many ways you can invest is by joining a Real Estate Investment Trust. These act more like a mutual fund which allows you to join the housing financial market may just putting money into property. However, if you’re more of a hands-on person and want to mix your house flipping with your REIT, it’s a great way of making more of your investment while adding value to the property. Once you finish the repairs to the house, you can see if your REIT will allow you to put it up as a property worthy of their capital.
House flipping isn’t the easiest investment in the world, especially if you decide you want to put your all into making a property that has an increased curb appeal and relentless stopping power. But, if that’s what you’re trying to do, looking over these options and doing your own research on how to add value to your investment might help you achieve your goal.