Staging Colorado Springs

head_left_image

Is this house flip worthy? 7 simple tips for 2017

Is this house flip worthy? 7 simple tips for 2017

 

Recently, I’ve been researching possible investment properties for a client whose interested in flipping. If you’ve tried it, you know. There’s an immense sense of pride and satisfaction you and your team feel when buyers appreciate all the sweat equity you’ve put into it. I gotta say its slightly addictive.

 flipped home, Kim Gaston colorado springs

House flipping has morphed into a mega industry of national investor seminars, groups and coaches. The success of HGTV has catapulted an even broader market of wanna-be flippers for 2017. 

 

Obviously, to be a success, you’ll need to conduct a heavy dose of both online and in-person research consulting with real estate experts, local investors and qualified contractors. Sometimes you just learn as you go. For instance, we flipped the home above 8 years ago and looking at it now I think, we did good, turned a tidy profit, but what are the bars STILL doing on those windows? See, you can always improve.

 

Below are 7 simple tips to help you decide if a house is possibly flip worthy:

 

1.  Know the cold, hard cost of renovating.

  • Interview various contractors, vendors and trades - gain a clear understanding of their labor rates and be able to assign a ballpark number to your budget should you need to hire them to complete the job.
  • Create a spreadsheet with solid numbers for the cost of:

mechanical systems, furnaces, AC, water heaters, roofs, windows, appliances, flooring, tile, lighting, plumbing, fixtures, cabinets, countertops, framing, drywall, painting, new electrical panel, concrete mudjacking, landscaping, etc.   (anticipate design-to-build costs for both interior and exterior)

 

2.  Know your buyer demographic.

  •  This is critical in understanding where to spend and where to save with your renovation costs. 

Will your target buyer care you installed a cheaper tile countertop, or will they discount their offer because you chose not to use a solid stone surface? Is your buyer a millennial who will pay extra for energy efficient appliances? Will this floorplan work for buyers who want their kids' bedrooms on the same level?

 

3.  Know your comps.

  • Have your REALTOR® pull sold comps. Comb through those listing photos and see what finishes are appropriate for your neighborhood and your budget. Is the new build competition down the street using wood laminate flooring or actual hardwood floors? What feature does this house have that the new build homes don't that you can promote?
  • Be realistic about what resale price the market will bear.

 

4.  Check online for all public records.

  • Are there any mechanic's liens filed? You could be on the hook for payment.
  • Does your regional building department show a permit record indicating the mechanicals’ age, the roof’s age? 
  • Is this a distressed property sold “as is”. Know the risk  involved with a foreclosure, short sale, bank-owned, government-owned property, etc. and the opportunities or limitations as an investor.

 

5.  Know your neighborhood.

  • How does the school district rank?
  • Is it in or near a flood plain? Will your buyer be able to insure it?
  • Is it in or near a landslide susceptibility zone?
  • Are there any easements? zoning requirements?
  • What does the HOA cover? Get a copy of their covenants, building and architectural restrictions.
  • Check your local sheriff department’s website for crime rates in the neighborhood. Is it safe or on the decline? 

 

6.  Know your bottom-line sales price.

  • Include your ideal profit margin to cover not just reno costs, but also your time.
  • Don’t forget carrying costs (utilities, insurance) while you’re flipping the house (how long will that take? 1-3 months?)
  • Are you paying cash, or are you financing part of this deal? 
  • Remember to include closing costs, and are you willing to pay some of the seller’s in case they ask for it in their offer?

 

7.  Know your budget BEFORE submitting an offer.

  • If the stakes get high, and the property is competitive, know when to walk away. There will always be another.

 

Educate, educate, educate yourself first. There's a myriad of local community offerings and online courses available to you (in Colorado http://www.renav.com). Consult with experienced flippers so you have a better understanding what business plan might work best for you and your model flip. Ask your local REALTOR®. We'll get you to the right resources. Looking to buy a home in Colorado Springs? I'd love to help. Please contact:

Kim Gaston, Colorado Springs REALTOR®, Front Porch Team Real Estate & Property Styling, member of Colorado Real Estate Advisers LLC, www.frontporchrealestatecolorado.com, kimgaston719@gmail.com       719-661-6987

Wishing you much success in 2017!

 

 

Colorado Springs Realtor

 Front Porch Real Estate

Front Porch Real Estate & Property Styling | kimgaston719@gmail.com

If you'd like to know what your Colorado Springs home is worth,

please call me at 719-661-6987 and I'd be happy to offer a current market value estimate.  

To view inspiring Before & After staging photos, visit my portfolio at:  www.FrontPorchInteriors.com

 

 follow me on linkedin    facebook     Pinterest 
Comment balloon 28 commentsKim Gaston • December 29 2016 07:41PM
Is this house flip worthy? 7 simple tips for 2017
share
Is this house flip worthy? 7 simple tips for 2017 Recently, I’ve been researching possible investment properties for a client whose interested in flipping. If you’ve tried it, you know. There’s an immense sense of pride and satisfaction you and… more
3 key words to help stage a vacant home.
share
3 key words to help stage a vacant home. Your renters have moved out and you’re about to put your vacant home on the market. Per your REALTOR®’s advice, you've fixed any deferred maintenance and hired a professional cleaning service. Good job, homes… more
12043 Rio Secco Rd. Peyton, CO 80831
share
Charming and beautifully updated, farmhouse-style home with 5 bedrooms (3+master up), 4-car garage and walk-out basement on 1/2 acre in Falcon School District 49 offered at $379, 000. * 3 outdoor entertaining areas include inviting front porch, 20 x… more
Chrysanthemum, Brookside Gardens IMG 1741
share
Roy Kelley truly knows how to capture nature in its most beautiful light. This lovely Pink Chrysanthemum on a cold, snowy day in Colorado sure feels like eye candy). Chrysanthemum, Brookside Gardens IMG 1741 Brookside Gardens in Wheaton,… more
The Best Staging Tip for 2016.
share
Sellers, to find out the best staging tip for 2016 we’ll assume you and your REALTOR® have reviewed the obvious must do’s: 1. FIX all deferred maintenance. No buyer wants to adopt your problems. And when you're a buyer, you won't want theirs… more
2016 Benjamin Moore Color of the Year
share
2016 Benjamin Moore Color of the Year If I asked my dad to describe 2016 Benjamin Moore’s Color of the Year, he’d say that’s a no-color, color. Meet 2016 Benjamin Moore's Color of the Year - Simply White OC-117 or 2143-70. http://www. benjaminmoore… more
Fall Friday on the Front Porch
share
Fall Friday on the Front Porch Simple, lovely, crisp days during one of my favorite seasons. Take a moment to pause, reflect, and enjoy your beautiful Fall Friday! more
5 Key Tips to Create a White Farmhouse Kitchen
share
5 Key Tips to Create a White Farmhouse Kitchen Who doesn't love a good kitchen redo? Knowing what to do that creates a nice bang for your buck can be tricky. Check out any HGTV remodel show. Kitchens see a big chunk of the budget. Kitchens sell… more
Pine Creek, Colorado Springs CO Homes for Sale - October 2015
share
Pine Creek Colorado Springs CO - Homes for Sale October 2015 The Pine Creek neighborhood lies approximately 48 minutes from the Denver Tech Center and offers mountain vistas, rolling hills, upscale dining and shopping, all within a golf-course… more
Find your passion… help a millenial.
share
Find your passion… help a millennial. My daughter is a Colorado Springs high school senior this year. Love her to pieces. So melancholy about the brief time she has left at home before graduating to a whole new level at Colorado State… more