Ready to Start Flipping Houses
You’ve watched an entire season of HGTV’s Flip or Flop and you’re ready to start flipping houses. After doing a little research, you find that flipped homes produced an average gross profit of $58,250 in the first quarter of this year, according to a report by RealtyTrac.
But before you start sledgehammering that wall between the kitchen and the living room, there are many factors to consider when deciding to move into the house-flipping business — one of them being location.
Financial advising site WalletHub has you covered. WalletHub analyzed 150 of America’s largest cities to find the best places in the U.S. to flip houses, considering factors such as median purchase price and bathroom-remodeling costs. In addition to placing the cities in an overall ranking, WalletHub breaks down each location into three categories: house-flipping market potential; renovation and remodeling costs; and quality of life.
Out of 10 Cities Chosen: Fort Wayne, Ind. Ranks #2
Fort Wayne, located in northeastern Indiana, comes in second on the list of best places to flip houses. Fort Wayne ranks 90th for house-flipping market potential, but it really shines because of its renovation and remodeling costs, which are the 14th-lowest among 150 cities analyzed.
Fun fact: Fort Wayne also has the lowest average bathroom remodeling cost. (Kitchens are cheapest to renovate in Mobile, Ala., and entire houses are least expensive to upgrade in Little Rock, Ark.)
So now you bought a house and you’re ready to start flipping houses. The project it may seem overwhelming. Where do I start? It’s like a 1,000 piece puzzle. Kevin Perk at Bigger Pockets goes through those six stages and outlines what you, the investor, needs to do to see the project through to completion.
- Organize – The first task is to make a list of what needs to be done. You can and should use the estimates from your inspection checklist. Do any of the major systems need to be upgraded/replaced/installed? Do windows need replacing? What about drywall and trim work? Will the kitchen and baths need major upgrades? What about the floors — what will you cover them with? Will you be adding any features outside, such as a deck, fence or driveway?
- Design – Now is your chance to update and improve the property to make it more appealing and bring it up to modern standards. This is the time you should think about open floor plans, bigger baths, and larger and more convenient laundry areas. Now is the time to lay out an awesome kitchen or a back deck. More lighting and space for all of our modern electronic gadgets can also be very appealing. Don’t be afraid to move or remove a wall or two to open something up or make a room larger and more functional. You may even decide to build an addition.
- Install Systems – Once you have organized your rehab project and laid out a basic design, it is time to get the systems in. This means running wires, pipes and ducts through the property. This is the messiest stage of the rehab process, and your contractors will likely be ripping things apart, sawing or cutting holes in everything and basically getting in each other’s way. It can be really tricky to get some of these systems in place, especially in older houses.
- Frame It Up – Once you get your systems in place, you can begin to frame everything up and trim everything out. Again, this is often not an easy task. Getting drywall to look smooth and finished is a skill and an art. A good drywall crew and skilled carpenter is a must here.
- Add Finishes – This is perhaps the most important step in your project. It is what people will actually see and touch when looking to rent or buy the property. This is where your good taste and design skills come into play. The trick here is to get all of your finishes, colors and designs to fit together.
- Put All Together – This can actually be the hardest stage to do. Lots of people can begin a project, but few can actually finish. Here is where you will really need to keep on top of things. You need to make sure everyone has the parts and equipment they need, that small details are not overlooked, that there are actually light bulbs in the lights, that the toilets flush and that the doorbell works.
Many houses you consider for rehab are in need of a total gut job, but you need to know your tolerance level. We are a member of the Ft Wayne community and we know that rehabbing, if done right, is rewarding from a financial standpoint, but is also good for the community. No more drug houses with late night visitors and less crime in affected neighborhoods. You can be a part of that, if you do it right.
JT Integrity Properties is here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 260-202-2222 to let us know what YOU need help with!