One of the most popular investment strategies in the real estate world is something that could be referred to as "the fix & flip." This is the simple practice of purchasing a home in need of repairs, completing the necessary work and then reselling the home for a profit. The question is how much work is too much and what do you do if the home is not selling once fixed?
Its a good idea when considering a home for any purchase to consider just how much needs to be done to it to either make it attractive enough to flip for a good profit or attractive enough for you to live in it. There are some typical fixes that are done in this kind of scenario in addition to whatever needs to be done to the home.
The first thing that should always be done is a proper inspection. This will let you know what needs to be done to the home to bring it up to code or standard. with this list in hand, begin to work your way through the home room by room adding any eyesores to your list. A great way to make any home look livelier and well cared for is new paint in all rooms and outside as well. If the floors are older carpeting or linoleum, it would be worth your while to change them. Carpeting is difficult to keep clean and has lost popularity to laminate flooring. Laminate gives a room a clean and finished look and adds warmth as well. This is also a great time to do something about those outdated appliances if there are any. Few things add value to a home like brand new appliances.
Another aspect of a fix-er-upper that usually can use some love is the exterior and landscaping. An unsightly yard can be made over into an attractive and eye catching yard quite easily. A good place to start is with the gardens and lawn. Cut the lawn and trim the edges. Then, continue on to the flower beds. New healthy flowers add a pleasant visual element to a house's facade. Also, putting down a nice dark mulch will stop weeds from sprouting and ruining the work you have done. Changing the landscaping is a great way to drastically alter the look and the value of the home.
Remember that you are spending quite a bit of your own money on this home. Your asking price for the home has to cover all your costs for the renovations and turn a profit. But be careful to investigate the trends in the area, you don't want to price the home out of the local market. This can be one of the most profitable investments if done correctly, do your homework and the rewards will be great.
