In recent years, TV shows on networks like “HGTV” have encouraged many realtors and those interested in buying and selling homes to get into house flipping. While flipping houses can be lucrative and rewarding, it can also be hard work, requiring a lot of planning, scheduling, and financial commitment. Fortunately, there are a lot of resources to help beginner flippers find their footing in the business. This ultimate guide to flipping houses in Santa Fe will offer guidance on how to get started and tips to succeed.
What is house flipping?
One of the biggest challenges of flipping is that the process needs quick completion to make the most money. This can be difficult when a home requires a lot of work, but it is possible when flippers buy with a plan and a roster of reliable contractors on standby. The most successful flippers tend to go for the oldest or most rundown homes in the most exclusive neighborhoods. After repairs and upgrades, these houses become homes everyone is clamoring to buy.
Benefits of house flipping
House flipping can also increase neighborhood property value. Many homes purchased by flippers are in poor condition, and the surrounding community might even consider them eyesores. Upgrading and enhancing these houses for a brand-new owner can make the neighborhood even more desirable and boost the property value of all the homes around it.
How to find houses to flip
Regularly check foreclosure sites and attend auctions around the city to find candidates for flipping. You can also make it a habit to drive around periodically and look for "For Sale" signs. Keep an eye out for homes in top neighborhoods that show signs of disrepair or distress. This could include boarded-up windows, overgrown grass, or other general indications of neglect. Things like peeling paint are common in Santa Fe's hot and arid climate. You can easily remedy these issues that can be quite an eyesore in otherwise beautifully maintained neighborhoods. If you see one of these homes, note the address and research it later. Can you contact an owner and purchase the property directly?
Envision the possibilities
Establish a plan early on
- Set a budget. Budget for the upgrades and renovations you know the home will require and then multiply that twice to account for any hidden costs. Unexpected costs will arise during the project, and being prepared for them will help prevent the financial drain.
- Plan updates and renovations. Work with contractors to schedule all the needed repairs and renovations. Just as all property renovations require different amounts of money, all projects have their individual timeline. Be clear about your timeline with your contractors, and make sure that everyone is on the same page.
- Complete the redesign. After you have completed the flip, do a thorough walkthrough and test every appliance. Look at the property as a new buyer would, and imagine yourself living there. Are there things you would want to change? Consider what buyers might want. In Santa Fe, buyers will look for pools, upgraded heating, ventilation, air conditioning systems, and outdoor living spaces.
- Stage and market the home. Once satisfied with the renovations, it's time to stage and market the property. Work with a real estate photographer to show the home at its best. Working with an expert real estate agent is the best way to list the property since they can handle showings and help you field offers.
House flipping mistakes to avoid
Another mistake is not working with licensed Santa Fe contractors. You should always work with talented, reputable contractors, remodelers, licensed home inspectors, and real estate agents. Whether you plan to flip full-time or part-time, you will benefit from surrounding yourself with professionals.