When flipping a home, you must be strategic about the renovations you make and how you accomplish them. House flipping shows make all this work look more effortless than it really is!
To make the process stress-free, we’ve come up with a few ways to save money while flipping a house—check them out below.
Keep a budget spreadsheet (and stick to it)
If you want to save money, you must outline costs ahead of time. When you keep a detailed spreadsheet, you can easily see where your money will go. This helps you make smarter spending decisions as you purchase supplies throughout the course of your project. As you create your budget, don’t forget to set aside money to account for unexpected expenses.
You’ll likely end up spending less when you figure out your costs beforehand, and you’ll be able to tackle any market fluctuations with the money you have left over.
The labor costs that come with hiring professionals won’t necessarily be cheap. If you can perform a job on your own or with friends, you should do so.
For example, if you know how to paint and can easily reach the highest points of your home’s walls with a ladder, paint them yourself. Or, if you’ve restored floors in the past, go ahead and make your vision come to life. Your efforts now are sure to save you money for other aspects of the flip.
Flip houses that are completely up to code
The flipping process is a lot easier if you reinvent a house that’s architecturally sound. You’ll lose profit if the home has a settled foundation or other structural issues, as you’ll need to fix those problems before you sell it. But these problems can get expensive, and you don’t want to spend your budget addressing things outside your planned renovations. Unless you believe the property will be worth the repairs, it’s best to look elsewhere.
Make smart renovation decisions
You may want to tackle major renovations, but you can actually make small upgrades that’ll drastically change your home’s appearance for less money.
Try the following:
- Focus on “curb appeal”—plant trees and shrubs
- Replace old appliances with new brand-name ones
- Replace old windows
- Refurbish old cabinets
Save on your supplies
Check out big bargain stores for appliances, materials, and tools. If you can, avoid renting any equipment—it’ll only cost you more in the long run. New equipment may cost more upfront, but you can use what you own during a future project.
You can also check out stores that offer recycled building materials, such as the Habitat for Humanity ReStore.
Talk with a real estate agent
An experienced real estate agent can help you select a home to flip in the right neighborhood. You need to buy in an area where home values are increasing at a gradual rate. This way, you can flip the house and time your sale right. Additionally, a real estate agent can connect you with dependable contractors. It’s worth the time and money to work with somebody who knows the area and market!
As you can see, there are numerous ways to save money while flipping a house. Each route listed here can help you reduce costs and still produce the home buyers want.