Are you contemplating the idea of a fixer-upper as your next home or investment? Wait a minute! It's crucial to do some thorough research before plunging into such an endeavour. A multitude of people are drawn towards fixer-uppers during their house hunt, primarily due to their affordability. After all, who can resist the allure of bagging a great deal on a property? But let's not forget, it's always wise to delve into the details before making such a monumental decision! Get our report mailed to you for free here.
The first place where flipping a home can go wrong is in the very beginning, specifically with the purchase 
of the property.
Even experienced home flippers must tread with caution. The real estate market from 2020 to mid-2022 was a rapidly changing landscape. The thrill of the chase and the anticipation of ever-rising prices led some to let down their defences against potential risks, resulting in costly errors. It's crucial to remain vigilant and not get swept away by the frenzy, as even a momentary lapse can lead to significant setbacks.
Flipping a home can still be a lucrative venture, even in the current buyer's market. However, it is likely to change in the coming year. Education is your best tool no matter what you do and flipping a home is no exception.
If you are considering a flip property it is imperative to contact us first! We can provide the information you need to make the best decision possible! Call/text 226-400-6458 or complete the form here to receive a special report with more details.
Ready to get serious about property flipping? Check out this book The Book on Estimating Rehab Costs: The Investor's Guide to Defining Your Renovation Plan, Building Your Budget, and Knowing Exactly How Much It All Costs Here for a great place to start your research!
Here are some essential insights that will empower you to make investment decisions that not only safeguard your hard-earned money but also promise the most rewarding returns.
Fixer upper VS Tear Down
How much work is TOO much work? Consider what you can do yourself and what you will need to hire someone else to do. Trades should be licensed and insured and as the investor be sure to always get permits where required. Failing to get permits and inspections can reduce the sale price of the property once completed or even worse, turn prospective buyers away all together!
It is always a good idea to have professional advice on all aspects of the property in order to make informed decisions. This process often begins with an experienced Realtor. Not only have we flipped several homes ourselves, but have also helped guide many clients in the right direction. Call/text 226-400-7458 now to set up a free, no obligation consultation.
Levels of fixer uppers.
The term ‘fixer upper’ could mean a total renovation or it could mean a home that simply needs cosmetic work. It is a good idea to have an honest conversation with everyone involved to be sure everyone is all on the same page.
Level 1
Cosmetics only please! This is a great place to start for beginners! It is less expensive in both time and money if you do not need to complete major work. Think painting, flooring and decor!
Level 2
Cosmetics and kitchen and or bathroom. It is common for the kitchen and bathrooms to need updating as the next step up from cosmetics. This will cost more in time and materials but presents a nice wow factor when done correctly, who would not love a new kitchen?! This will also likely bring a higher ROI at the end of the project.
Level 3
Main floor done, time to finish the basement! This is often a good option when living in the home you are flipping. Be sure to do your home work on layout and design to get the biggest impact when you sell. Avoid choppy layouts and many different finishes and opt for a good flow of design and decor. Intentional spaces are the trend for 2024! Check out ideas here!
Level 4
A combo of 1, 2 & 3! Some homes need a bit of this and a bit of that. Assessment and Planning are key to a successful venture. Deciding on priorities and biggest bang for buck will take time and research. Having access to recent sales data of flipped homes is a service we can provide to give you information you didn’t even know you needed! Reach out for more details.
Level 5
Multifamily conversion! With home prices today people are looking at multifamily properties to be able to comfortably afford to get into the real estate market. It makes a lot of send to move in with a friend or family member if you can still have your own private space. Alternatively you may be able to rent out an accessory apartment to earn an income.
Level 6
Century home restoration. This is a big one you want to be passionate about. It will take a considerable amount of time and money to bring a Century Home to todays standards, for those who love these homes it is a labour of love. Will you keep it or flip it? Buyers who love Century Homes and don’t want to do the work will pay a premium for a turn key turn of the century home.
Level 7
Tear Down and rebuild. For some properties, it just makes sense to tear it down and begin anew! Most municipalities welcome the idea of removing a dilapidated home and upgrading the neighbourhood with a new home. Be sure your intended use is allowed before you buy it!
This is intended as an overview with general information, there are many more things you need to know for a successful outcome. Call/text us 226-400-6458 for a free, no obligation consultation today.
Happy House Flipping!
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- Off work for the winter? Ask about projects you can complete by spring!
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