Flipping properties is an excellent way to make additional income in Chicago. By knowing a few tricks, you too will be able to profit from house flipping! Learn more about how to do it in our latest post!
Flipping houses was all the rage a few short years ago. Savvy investors who weren’t afraid to get a little dirty were able to fix and flip houses, achieving incredible profits. As more and more people caught on to this investment tactic, the competition became steeper. Profiting from a house flip isn’t what it used to be. However, there are still tremendous profits to be found for those who know what they are doing. Use these tips to help yourself to profit from house flipping in Chicago!
Find The Market That Is Right For You
Before finding a home to flip, you need to find the neighborhood where flipping a house will make the most sense. It doesn’t pay to find and flip and house in an area where nobody is buying. A great deal in a bad neighborhood will get you nowhere. Check out recent real estate reports, housing trends and plans for future development in the area. Ideally, you will want to look for a property in an up and coming area. Many neighborhoods are labeled as such but you will want to find out what the data says before making your purchase.
Set Your Prices
When you decide to flip a house in Chicago, you need to know exactly what you can afford to spend. You will need to estimate your costs and add a generous buffer for all the unexpected costs. When you expect them in the first place, they don’t sting as much! You also need to know what you need to make on the property. At what point will you begin to break even? And at what point will you begin to lose money? Know these numbers before spending a dime on a fix and flip property in Chicago.
Find The Right Property
The odds are you aren’t going to find your dream deal, especially on your first go-around. As any house flipper will tell you, there is a lesson to be learned with each property. When you are buying for investment purposes, all you can do is stick to your numbers and find a property that fits! Remember, you are not buying this property for yourself. Don’t become so consumed with the details when purchasing the property or fixing it up. To find a great deal, you might find yourself having to compromise on other things you wanted. Being flexible is ideal, but don’t stray too far from what you are after.
Be An Expert Marketer
Marketing begins long before you put the house on the market. Consider the desirable elements people will want to see in a property. What will catch someone’s eye and make them say, “yes, I want that house”? Without sinking a fortune into the property, consider adding some inexpensive, yet powerful elements that will appeal to buyers. Be considerate of your neighborhood and your demographics. One house might benefit from a wine fridge in the kitchen island, while another might benefit from a book nook under the stairs. Think about what your buyers will want before you redo the house. Market to them with the very first swing of the hammer.
As the time comes closer to get the house ready for a sale, do anything you can to hype up interest for the property. An open house/neighborhood party is a great way to get the word out. Generating excitement and welcoming people into the home is a great way to reach potential buyers.
Have An Escape Plan
As with any real estate investment, you should always make sure you have a way out. You never know what life could throw at you or what other investment opportunities could arise. Make sure you are able to sell the investment quickly if you need to liquidate your assets.