There are countless home improvement shows on TV that would have you believe flipping a property is easy. There’s nothing further from the truth: if you buy a house in Santa Cruz, you’ll find that there’s a whole lot more to flipping than simply remodeling it to sell.
Like any other real estate investment, flipping houses requires a lot of time and effort. You also need awesome organizational skills. If you’re keen on throwing your hat in the ring, here’s some solid advice for you:
Research the local market
Having a good understanding of the local market is vital when it comes to flipping property. Know the average market value of homes for sales in Santa Cruz County so you can spot the best deals. Every locale follows its own market trends so it’s best to focus your search on specific communities.
Remember, location is one of the most important factors to consider when flipping a home. This aspect can greatly impact your investment. Carefully study the market and the houses that typically sell in your target neighborhoods. Also, avoid over-improving your property.
Find the ideal property
When searching for houses for sale in Santa Cruz, CA, be prudent. Look for homes with a good, solid structure that can easily be improved. The goal is to boost the value of the home with as few renovations as possible.
When viewing houses, inspect carefully. Look for any potentially major issues that could eat into your potential profit. Mold, an unstable foundation, and similar issues are among the things you should keep an eye out for. Even if it’s the least expensive property on the block, don’t buy before really taking a look at it. If you’re not careful, you could end up with a money pit instead of a viable investment.
Know the home improvements with the best ROI
Have a cost-versus-value assessment done before you start on a remodel. Be smart about what to improve on; some home improvement projects can give you more bang for your buck.
In California, improvements to the master suite, kitchen remodels, and bathroom additions have consistently helped boost home resale values. Meanwhile, projects including the use of manufactured stone veneer and garage and entry door replacements registered the highest recouped cost.
Remember not to go overboard with your improvements. Over-improving your property will balloon your costs, leading you to outprice the neighborhood.
Assess the pros and cons
Flipping property has plenty of rewards—and just as many risks. Before starting your home flip, make sure you’re aware of the advantages and disadvantages of this investment route.
Flipping homes is great for those who are looking for a short-term investment. It also provides you the opportunity to create connections within the industry and provides helpful insights to the market.
Enlist the help of a local real estate agent
A lot of work goes into making a real estate investment lucrative. Before you leap into anything, seek guidance. Find a local real estate agent who can provide the local expertise and industry knowledge you need to make your property flip a success.
Ready to start your real estate investment? Get in touch with the top producing realtor in town, Amber Melenudo. Give me a call today at 831.661.5591 or send an email to amber(at)davidlyng(dotted)com.