5 Tips for Your Next Flip
Congratulations! You have made the decision (or are at least thinking about making the decision) to fix-and-flip a house and take control of your own financial future. Good for you! Or maybe you are a seasoned flipper who is just looking for a few new ideas for saving money. We’ve got you covered! Using these 5 money saving tactics can help you increase your return on your investment by reducing your costs and resources put into the house while still maximizing your profits!
Tip 1: Work with what you have
Whenever you purchase a property that you intend to flip, the first thing you should do is take a mental inventory of what is already in the house. Ask yourself these questions: What is salvageable, what can be fixed and what can be used elsewhere? Do you hate the color of the laminate countertops, but they are still in good condition? Consider buying a countertop resurfacing kit for a fraction of the cost of replacing them! Is the house filled with outdated, and stained brass fixtures? Change them up with bronze or silver spray paint designed for use on metal! Does the house have any flooring that is salvageable, even if it needs to be moved to another section of the house? Get your hands dirty and pry it up! Saving whatever you can from the home can really save you money in the end.
Tip 2: Check clearance sections at retail stores and consider shopping at second hand stores
You wouldn’t believe some of the stuff that stores like Lowe’s or Home Depot have in their return section. Some of the products may be damaged or are missing pieces but are still useable if you have the right tools and are willing to put in a little extra work. Often times, the product isn’t even damaged or defective, someone just decided they didn’t like it as much as they thought they did in the store. Know of any second hand stores in your area like Goodwill or Habitat for Humanity? Consider checking out their ever changing selection before shelling out full price at a retail store.
Tip 3: DIY as much as possible
Many flippers already do a lot of work, like painting and cleaning, themselves. But the more you can do on your own, the less you will have to pay someone else to do. Things like laminate or stone countertops are expensive and can be pricey to install, but most of the time, you can find materials like butcher block for a much cheaper price. All it takes is a little elbow grease and some inexpensive wood stain to really bring it to life! Make sure to be smart and careful as some jobs, like electrical, can be dangerous if you don’t know what you are doing. Know your limits and hire a professional when you need to. Better yet, ask a friend or hired professional to teach you along the way!
Tip 4: Buy in bulk
Things like paint brushes, switches, outlets, vents and nails can add up fast! Next time you are purchasing some supplies, check and see if your store has a bulk or contractor discount. That 10¢ or 20¢ difference per item can save you a lot of dough in the long run.
Tip 5: Build relationships
I know what you’re thinking: what does building relationships have to do with flipping a house? More than you might think! Flipping a house takes a lot of work and sometimes, you’re going to need help. Suppliers, contractors, realtors, hired professionals and even other flippers can be invaluable resources and provide a wealth of knowledge. Remember all those times your mom told you to be polite and play nice with others? She was right. When someone is kind enough to help you out or did a great job for you, make sure to maintain those connections! Just taking the time to send a hand-written thank you note or making a quick phone call can make all the difference in the world!