How to be Successful at Flipping Houses in Philadelphia
Are you thinking of tackling a house flip? You’ve probably seen the shows on TV. HGTV makes this process out to be super smooth and easy. While flipping a property can sometimes be straightforward, it isn’t always, and there’s lots of potential for things to go wrong.
Renovating a property is not all rainbows and sunshine when you’re planning to flip it (not live in it). Even if you buy for a really good price, margins can still be tight or creep up on you. Depending on how the flip goes, you may find yourself saying, “I need to sell my house fast in Philadelphia” to cash out of the project.
But, when done correctly and thoroughly, flipping a house can be lucrative. It can be a great business move that generates cash, which you can use to fuel your next real estate investment or supplement your normal salary.
Keep reading to learn our tips on how to be successful at flipping houses in Philadelphia.
Firstly, it’s important to consider how much time you have and need to invest in flipping a property. This should be one of the first things you consider before you even purchase a place. You don’t want to jump into a project before knowing whether you can commit to the time required. Depending on how you’re financing the project, the time it takes can greatly impact your return on investment (ROI).
In an ideal world, you’ll have lots of time on your hands, so you can be involved in the day-to-day running of the project. However, if this isn’t possible, it’s important to still be available. This is especially key if it’s your first flipping project.
Maintaining strong communication with anybody working at the property keeps them motivated and on task. Even if you don’t plan to be there too often, someone should keep an eye on the project a few times each week to ensure all is well and that contractors are doing their jobs.
You, or someone in your group, should always be nearby, too. When things pop up during renovations that need attention, it’s crucial that contractors know they can contact you or someone else. Otherwise, this can lead to delays and an unmotivated workforce.
If you can’t commit to the time required and you know you’ll be absent, make other arrangements for someone to be involved. For example, you could hire a project manager, an administrator, or a virtual assistant to keep tabs on everything that’s going on.
What to Renovate
Every project is different, even if it looks like a typical row home in Philadelphia. There’s always going to be something unexpected that pops up, no matter how much planning you do! Don’t be afraid to get second opinions and ask for help on things you’ve never come across before. There is most likely someone out there that has seen the issue that you are dealing with before.
Use your network when flipping a property. Ask advice from experts in the industry and speak to a real estate agent about which home improvements add value.
For most flipping projects, there are things that must be fixed, and things that don’t. When deciding what to renovate, consider the following things first:
- Is it essential for structural or security reasons?
- Will it add value? (I.e. with an addition or attic conversion)
- How long will it take?
- Will the time invested be worthwhile?
- Does it only add to the aesthetics?
Naturally, you want to ensure you get more back than what you put in. The most important areas of a property to focus on are usually the kitchen, bathrooms, foundation, and roof. Make sure to size everything, especially the kitchen cabinets, correctly so as not to lose additional money.
This cost is a common one that folks forget to account for. Property holding costs are the costs an owner must pay on a property during the time they own it. You should know about and ensure you factor into your numbers things like:
- Premiums you’re paying (in the event you obtained the cash)
- Property charges you will be paying while you own the property
- Protection costs for the property
- Service bills
These costs are in addition to the costs of building a house in Philadelphia. Most of these fees will be continuously charged right up until you sell the property. This is another reason why the time it takes to flip a property and what renovations you do are so important. Always try to include accurate estimations of these fees in your financial plans, with contingency for if things go wrong and the property takes longer to sell than planned.
Remember, if you need to sell a house fast, Brotherly Love Real Estate buy houses for cash quickly in the Philadelphia area.
Once you’ve completed your project, your next step is to decide the most ideal approach to selling the property. Many individuals imagine that it is a smart thought to sell the property as “available to be purchased by an owner”. This can achieve a high resale price, but keep in mind that this can be a long procedure, and you’ll need to set aside some cash on commissions.
At some point what you would pay in commissions can be made up by employing the correct real estate agent to rundown, market, and sell your property at the best and highest price. Not always an easy task. On the off chance that you decide to hire a real estate professional, see it as a business exchange and that you are recruiting this individual to handle the entire process for you.
They are professionals, don’t be afraid to let them take the wheel. Everybody has a cousin or a companion from work that is a real estate agent or works in real estate “on the side “, however, is this the best individual to recruit for your business? Vet who you hire, and make sure they have lots of experience. Utilize resources like Yelp and Zillow to find a good fit for the property you are trying to sell. Trust your gut if something seems too good to be true.
Considering Flipping Houses in Philadelphia?
If you’re considering starting a project, flipping a house, or selling your property in Philly – and have questions – call us anytime at (215) 326-9208. We can give our advice on how to be successful at flipping houses in Philadelphia with real estate advice, tips, and best practices.
Or get a FREE no-obligation cash offer quote on your Philadelphia home today. We work quickly to get you an offer that makes sense for your property. Our team specializes in win-win situations for homeowners because we buy as-is.