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Tips for Flipping Your First House
Investing in property is always a solid decision, and buying an older house that requires some work can bring with it even bigger rewards. Flipping a house can dramatically increase its value, so regardless of whether you’re going to sell or rent the house, or use it as your next family home, there are gains to be made.
Most houses that need flipping are older or in up-and-coming areas. These are great properties to purchase for a number of reasons, the first of which being that you can get a lot of bang for your buck. If you don’t mind a bit of a DIY project, you can have a great house in an affluent area for a fraction of the average market rate.
All that being said, flipping a house can quickly drain your budget and eat away into your life savings. Nothing ever goes to plan, so if you don’t have the biggest contingency fund, you need to ensure you purchase a manageable house that you can afford to flip.
Here are some tips for flipping your first house.
Look out for structural issues
Renovating a house is so much more than making it look nice. If the house is older or in a dilapidated condition, there’s a high chance it’s suffering from some potentially serious structural issues which could be extremely expensive to fix.
One of the first things you should check for is damp. This is a pesky problem can cause a lot of damage to every aspect of your house. Whilst it’s not the most glamourous of jobs, doing a thorough check for rising damp, penetrating damp and condensation could save you money in the long run.
Often, checking for damp can throw up other issues such as woodworm, dry rot or wet rot. Dry rot can extend to masonry, so check for obvious signs on beams and floorboards. Wet rot might also not be obviously visible, so you will need to know what does wet rot look behind plaster, for example.
You will also want to check for signs of subsidence or bowing walls. These could indicate issues with the plot of land your house is built on. If you choose to ignore these, don’t be surprised if your house starts to sink or a wall falls down. Also, don’t be surprised if you get denied house insurance on the basis your property is high risk.
All of these issues can cause serious damage and may require extensive building work to fix, so make sure you don’t gloss over the bones of your new house – because this is where your biggest problems could lie.
Learn to haggle
Bringing a house into the 21st century doesn’t mean everything you buy has to be brand new. You can find some proper bargains when you go looking for them, especially when it comes to floors and kitchen/bathroom suites. You can purchase reclaimed flooring and carpet offcuts for a fraction of the price, and you can even find ex-display kitchens and bathroom suites that are available for a fraction of the full price.
Frequenting markets and places like the Facebook marketplace can get you some really good products at a really low price. They might require a bit of travelling to pick up or a bit of elbow grease to bring to life, but the added effort is well worth it.
Hiring tradespeople
When contracting tradespeople to carry out your renovations, always try and lower their rates whilst remaining fair. You could save some serious money by doing this. If your budget is restricted, try and do as much of the work as possible yourself because this will save major money and preserve a good chunk of your budget. Rope in friends and family to help if they’re able to.
Whilst some of the larger tasks like plastering and electrical/pipework will need professional attention, things like gutting the house, stripping floors and walls and decorating are all doable yourself.
Stick to the 70% rule
The final and perhaps most essential rule for flipping a house comes down to finances. If it transpires that the cost of any structural repairs and a full decorative renovation will cost more than 70% of the after-repair value of the house minus the repair costs, you could struggle to make a profit. If you intend to sell the house on, this is a big thing to consider.
This is why doing a full survey of the house before you buy to minimise the risk of any nasty surprises is recommended, and it’s also where haggling comes in handy.
The market value of the house isn’t so much of an issue if you want to live in it afterwards, but it’s still something to keep in mind.
If you’re embarking on a house flip, make sure you go into it with a good credit history and a clear idea of your end goal. Paired with proper preparation, good buying skills and financial stability, your house flip should be a smooth and enjoyable experience.
These are great tips. My husband and I have toyed with the idea of flipping a home. I’m super interested in it, and I think these tips are a huge help.
Agreed! I think it would be a fun experience too.
I have a friend who flips houses. I always enjoy seeing the before and after photos of the houses
It’s amazing isn’t it?!
These are some great tips. I don’t think I could ever do this. I know many people do though and earn a ton of money!
I don’t know if I could either, but I would love it if I did.
These are such great tips! There’s so much to think about when you’re flipping a house. I can imagine that it’s easy to make a mistake if you don’t have a roadmap like this.
Yes, for sure. Lots to think of.
I’ve often toyed with the idea of flipping a house but I am not super handy with home repairs so it is more of a dream for me.
Me too. I think it would be fun.
Great tips! We have been thinking about getting into house flipping!
I think it would be so fun!
Flipping houses seems like such a fun job. I would love to be able to re-do everything in my own style but have the foundation set.
I agree. I think it would be a lot of fun.
It is no easy task. These are some game changing tips.
I completely agree.
I really am curious about flipping the houses, but not because I want to do it, it’s just fascinating. People get a house and then make it into a “palace.” Wow, it is fascinating, isn’t it?
I completely agree. I love to see the before and afters.
These are all awesome tips.I can’t wait to flip my first home.
I would love to start doing this as well.
Thanks for the tips. Such a helpful article for those who plans on flipping a home.
Of course!
I don’t have any house to flip. But thanks for these lovely tips
I think it’s amazing to see the before and afters.
I don’t have plans yet. But whenever me and wife talks about “flipping a home” kinda stuff. She has a tons of ideas.
That’s great! Sounds like she’d probably be great at it.
I’ve always thought flipping houses looked like so much fun! I think it would be neat to see the beginning and end product.
Same here. I think it would be fun.
I’ve always thought flipping houses looked like so much fun! I think it would be neat to see the beginning and end product. It would also be fun to actually get to pick everything out.
I completely agree. I think I’d have fun with it.
A friend told me about haggling people for the best prices. It’s not easy, but it does come in handy.
Yes, for sure!
These are great tips for flipping a house. I’ve actually wanted to flip a house but it can be hard to take that first step.
I completely agree too.
Flipping houses can be risky but these tips sound like a recipe for success. Thanks for sharing, this has always been an interest of mine.
I agree too. I think it would be so much fun though.
lots of great tips! My husband has toyed with the idea of flipping a house but is always too swamped with work. I’ll definitely share all this information with him.
I think it would be a lot of fun.
These are tips that I should remember. I hope to buy a house soon!
I would love to flip houses. I think it would be fun.
What a great blog post! I ‘ve learned a lot from this! Thanks for keep sharing the helpful information! ♥
I’m glad to hear that. You’re welcome!