Thinking About Flipping A Property In 2021? Here Are The Insider Tips You Need To Know

Dated: February 15 2021

Views: 18

Thanks to popular home renovation shows, more people than ever are interested in investing in fixer uppers—and then flipping those homes for a profit.

But if you’re new to house flipping, chances are, there a lot of things you don’t know about the process—things that you typically learn from experience.

So, what would experienced house flippers tell people just starting out? A recent article from realtor.com outlined tips for new home flippers from experienced home flippers to help them succeed in 2021, including:

  • Don’t pay too much up front. The entire point of flipping a home is making a profit—but if you pay too much for the home up front, you’re not going to make that profit. Generally, when you’re planning to flip, you don’t want your maximum allowable offer (MOA) to be more than 70 percent of a home’s after-repair value minus the costs for repairs and renovations—otherwise, your chances of making a profit are slim.
  • Pad your renovation budget. Renovations almost always cost more than you anticipate—and if you don’t build those unexpected costs into your budget, it can have a negative impact on your bottom line. Make sure to build a buffer into your renovation budget—ideally about 25 percent—if you want to ensure your flip is profitable.
  • Go with the best contractor for the job—not the cheapest. In an effort to save money, you may be tempted to go with whatever contractor gives you the lowest bid. But going with the cheapest contractor can end up costing more in the long run if that contractor is unreliable, or doesn’t do quality work. When evaluating contractors for your flip, price is certainly an important factor—but make sure you’re hiring the right contractor for the job, even if that contractor isn’t necessarily the cheapest option.

The Takeaway:

Bottom line? If you’re thinking about getting into house flipping, you’ll definitely want to consider heeding the advice of flippers with more experience—and save yourself a lot of time, energy, and hassle in the process.

Blog author image

Nicole Gates

As a wife, mother of 5, retired military spouse, Yuba/Sutter native, and a seasoned real estate professional, Nicole recognizes and values the trust her clients place in her. She strives every day to ....

Latest Blog Posts

ABCs of Construction Loans

Building a home might sound like something reserved for the rich and famous, but the truth is, it might be easier than you think to get a construction loan.What is a construction loan? Construction

Read More

These Are the Pandemic’s Most Popular Home-Related Purchases

These Are the Pandemic’s Most Popular Home-Related PurchasesThe COVID-19 pandemic has forced many of us to spend more time at home than ever before—and, for many homeowners, all that

Read More

7 Ways Shopping for Real Estate Is Like Applying To College

7 Ways Shopping for Real Estate Is Like Applying To CollegeApplying to college can be a nerve-wracking experience, no matter how hard you worked or how good your grades are. There are lots of things

Read More

Thinking About Selling Your Home? Tackle These Kitchen Upgrades First

Thinking About Selling Your Home? Tackle These Kitchen Upgrades FirstWhen you list your home, you want to make sure you’re doing everything you can to ensure your property sells quickly and

Read More