HGTV.ca Editorial Team
Monday, May 5, 2014 11:28 AM EST
Patience goes a long way in gymnastics. You need effort, stamina, charisma, a willingness to bend over backwards—and you better believe you’re going to sweat. Those frontward, rearward, sideways and upside down flips might look easy, but they certainly don’t come easy.
But leave the leotards at home. We’re talking about the gymnastics behind flipping a house.
5 Ways to Flip a House:
1. Split Leap (of Faith)
If you have the capital but lack the skills, you can make a deal with a friend or acquaintance who can do the heavy lifting - literally. The only thing you’ll have to lift is your wallet. These relationships can work, but only if trust is centric. Friend or not, get the agreement in writing. Split the profits 50/50—that’s fair, right?
2. Dive Roll
Check local listings for buzzwords like “handyman special”, “rare opportunity”, “investment home” for homes in need of some tender loving care. But before diving into a dive, have an inspector accompany you to the showing to ensure the home’s structural integrity is still in good shape. Aesthetic renovations such as new flooring, fresh paint, new window coverings, and updated cabinetry and countertops won’t set you back nearly as much as rewiring a home’s electrical system or taking apart the plumbing might.
3. Front Tuck
Curb appeal is a huge selling point in most real estate ventures. But every now and then, you come across an exquisite home with an atrocious exterior. It’s possible the previous owner didn’t have the funds to update the front lawn or replace the front door (ranked the highest-yielding renovation by Remodeling magazine with a 96.6 return on investment). It’s also possible the previous owner simply preferred the boho-chic look. At any rate, finding an investment home like this can mean huge opportunity for you.
4. For(eclosure)ward Roll
With some real estate brokers listing homes without noting whether it’s a foreclosure or not, it may be harder to spot these little gemstones from afar. However, you’ll know when you’re dealing with a foreclosure based on the seller’s information; if the CMHC (Canada Mortgage and Housing Corporation) is listed as the owner, the property is clearly a foreclosure. They’re not fooling you! Just make sure the deal isn’t more trouble than it's worth.
5. Front/Back Walkover
While a new front door is the top-ranked reno with the highest return on investment, a wood deck addition is a close second. This update will fetch an 87.4 percent return on investment. If the front of the house, back of the house, or even the roof has the room and the capability to support a new wood deck, you might want to spring for it—provided you can get the property at a good deal, of course.
Make it a Routine
Getting into real estate investment presents its own set of risks, as with any venture out there—particularly if you don’t know what to look for. But practice, discipline, and diligent research will help you get better at spotting the winners when you see them.
by Golden Girl Finance
A leader in financial digital media, Golden Girl Finance is the modern woman's guide to finance, making the discussion of finance real, relevant and relatable—and shockingly entertaining.