Although the housing market is a lot different than it was a few years ago, flipping properties is still a great way for passive income. You can do maybe 1 flip per month or even less, depending on your goals. While some people want to put minimum work and money into a flipped home, your best bet is to get a rehab property. That’s where the gold is! A run down house is going to be full of opportunity and be the property you’re most proud of flipping, and here’s why: You can negotiate the price:
There’s a reason that torn down home has been sitting on the market forever: no one wants it. But you should! Houses that are in desperate need of rehab are also in desperate need of a buyer, so banks will be willing to let them go for less, just to get them off their hands. You can haggle down the price, and get a bargain or steal, compared to a home that has a few interested buyers. Big lots, small properties: Some of these homes are on a big lot but the square footage doesn’t fit with the home. If needed, you have the chance and the room to expand. Add on extra bedrooms or common spaces, and you’ll get more people interested in a home that can accommodate their entire family. Old houses have character: While a lot of people are choosing newer homes with open concepts, older houses have character that isn’t found in newly built houses. Take advantage of the character of these older homes, and bring in some new concepts to make it a unique property that your buyers won’t be able to forget.
Rehab properties have primarily cosmetic issues: Rehab properties sit on the market because of their appearance. A lot of the issues are purely cosmetic, and can be fixed with simple solutions like a fresh coat of paint, a bit of landscaping, new flooring and some fixture changes. You’d be surprised what lighting and some decorations will bring out of a home. When you hold your open house, other investors and agents will be wondering why they didn’t see all that the house had in store. You can inspire change: Run down properties are often in run down areas. If you start to remodel a home you’re about to flip, you can inspire neighbors to change their houses too. The problem is people hate change, but they also hate being shown up.
If they see the property you bought is looking better than theirs, you may light the fire under them to cut the grass, finally renovate their kitchen, or do some work in their backyard to make it more comfortable for their family. You’ll essentially bring up the value of the neighborhood one flip at a time. Appeal to all buyers: Everyone has their preference in a home, but it’ll be hard to find someone who wouldn’t appreciate a home that has been completely updated throughout. Use that as a selling point, and it will not be ignored. If you include before and after pictures, people will really be able to see why your property is an awesome buy. From first time home buyers, to seniors who may be moving elsewhere, your rehabbed property can appeal to all buyers.