Can you make $100,000 a year or more flipping houses part-time? You sure can! We have been successfully flipping houses in California for years and have taught many of our clients how to profitably house flip as well.
We recently shared this video on YouTube to walk you through some of our best tips and tricks for how to start profitably flipping properties.
House Flipping Tips That Will Make You 6-Figures:
If you can't see the video or prefer to read, here are some of the key takeaways from the video.
There are 5 steps to finding, flipping and making 6-figures on these properties.
1. Locating Properties:
See a property that looks distressed? It probably is! Or use resources like Property Radar and Property Shark to find them. I go into a lot more detail on these services in other videos.
You're looking for a property that you can buy for well under market value because of the condition of the property or because it is going into foreclosure. Then, you want to make sure you can purchase it with enough room to fix it and flip it for a profit.
2. Purchasing the Property:
It's important to act with high integrity when purchasing these properties. Also, do your market research and understand all the costs.
Start with the purchase price and walk the seller through each of the costs:
commission costs
closing costs
fix up costs
carrying costs
room for profit
Plus, we always say it takes 2x as long and costs 2x as much as you think it will, so plan for that when calculating the numbers you need for this to be profitable.
When it comes time to buying the property, you can purchase with cash, borrow money from friends and family, or use a number of loan products that allow you to purchase distressed homes.
3. Demo The Property:
Before you demo the property, get a pest report, so you know what you need to demo. Also, consider a home inspection early. Then, do all of the demo at once, focusing on removing everything that has to go so you can get the property into flip shape.
This could include:
kitchen cabinets
new doors
new floors
new bathrooms
backyard and landscaping
removing walls
When you're ready, demo the property and prepare it for renovation.
4. Get Good At The Fix-Up:
Make sure you understand the steps you want to fix up the property once it is in a shell state. For example, you want to paint it first. Paint first or paint will get all over everything.
Now, if you're replacing cabinets completely and have pre-fab cabinets that are already painted, then wait until after painting to put those in. If the painter is painting custom cabinets, then those go in first.
Put in bathrooms and then finish the kitchen. The last thing is the flooring. Flooring is last. There's a lot of steps and you do need to do them in order, or it'll cost you time and money to fix it.
Make sure to get fantastic prices and use licensed sub-contractors. Then, you act as the general contractor and this will save you money.
Shop around and get 3 quotes for everything. Understand what your labor and material costs are. This is where the problems happen for most people that don't make money on flips.
5. Sell Them Properly:
You have to do two things to sell a home properly: stage the property beautifully and use a licensed real estate agent who will do professional videos, professional photos and market the property.
If you're acting as your own agent, make sure you are staging the property and it looks flawless. Then, you need professional marketing.
It's really in your best interest to use a licensed real estate professional to help you net as much cash as possible.
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Now, how can you do this to make 6-figures? Well, if you flip one property per quarter and you make around $30,000 a property, this will equal $100,000 plus per year flipping houses part-time.
Use social media to help you find wholesalers in your area who can help you find properties that you can fix, flip and turn a profit. Or, don't be afraid to network to find people in your sphere who may know when properties are in distress.
This video is part of a longer series that explores a lot of house flipping tips, from how to find the perfect flip to selling it without an agent. Be sure to check out our YouTube channel for more videos.
If you're looking for a realtor who knows how to find the best properties to flip, give us a call at 916.524.9733. We'd be happy to talk with you and help you find that flip.
Russell Enyart and the Enyart Real Estate Group are top real estate agents serving serving West Sacramento, Folsom, El Dorado Hills, Granite Bay, Loomis, Rocklin, Roseville, and Sacramento County, Placer County, and El Dorado County.