Flipping houses has become popular in recent years, thanks to TV shows highlighting dramatic transformations and large profits. Whether it is a handyman’s hobby or a contractor’s livelihood, there are many opportunities to make money through this process. However, while it’s definitely possible to earn some extra cash by buying a house, renovating it and selling it, it’s also possible to lose a bundle.
We here at Corken + Company want our clients to be making the best decisions for them and their families. This includes sharing the pros and cons of flipping a home.
Pros of Flipping an Old House:
Buying an old home to flip can be a smart idea in some cases. If the house has been sitting empty for a fairly long period of time, you may be able to purchase it at a lower price. If it’s in good condition overall, and the work it needs is mostly straightforward and cosmetic, you may be able to make a significant profit.
Cons of Flipping an Old House:
Older homes can have many problems such as a leaky roof, a cracked foundation and drafty windows. The heating and cooling systems, electrical wiring and plumbing may also need to be updated. It may not have enough bathrooms for a modern family, or they may not have amenities that today’s buyers expect. You may also discover health hazards, such as mold or asbestos, which can quickly become a costly fix.
Know What You’re Getting Into:
You should always have a house inspected before making a purchase, but this is especially important when buying an old house that you intend to flip. Read our recent blog on the important things to consider when buying a home. Have a contractor you trust thoroughly inspect it, along with a professional home inspector, and make a list of necessary repairs to determine how much it may cost to fix the problems and flip the house.
What to Fix and What to Leave Alone:
Think about the needs of potential buyers. Focus on areas that families will use on a regular basis, such as the kitchen and bathrooms, and update as necessary. Make sure the house has enough electrical outlets to handle the many devices a family might use, and that they are safe.
Buying an old home and making it into something beautiful is never a bad idea. But using these pieces of advice can help you make sure the process does not become a hardship on you or more costly than it needs to be. Our expert team at Corken + Company brings over 20 years of experience to the Colorado real estate market. We can help make informed decisions to ensure that you’ll get a good return on your resale after you flip your home.
