Hey everyone! I'm considering starting a home renovation business where I flip houses. My plan is to purchase fixer-uppers in the $140k-$175k range, invest $35k-$50k in updates, and then sell them for $250k-$300k. I'm located in the south, so there are plenty of properties in my target price range. I'm not a licensed contractor, but I've got decent skills—I remodeled my last townhouse and made a $100k profit. I've got experience updating kitchens and bathrooms, but I'm feeling pretty stressed and would love to hear from anyone who's been in the business. What are the things I might not be considering? Any advice would be greatly appreciated!
5 Answers
It’s great that you’re looking into getting your real estate and inspection licenses—that knowledge will help! But you also need to partner with someone who knows the local market well. It can make a big difference in your success.
What happens if a house needs more repairs than you anticipated or if it's slow to sell? Do you have a backup plan? Renting could be an option since you're targeting areas with decent rental income, but make sure you're prepared for any surprises.
Markets vary widely, so keep in mind that buyers are getting smarter about flips. Often, people prefer houses that haven’t been flipped because they're worried about the quality of the renovations. You might face challenges when trying to sell flipped homes, even if your work is top-notch.
Just a heads-up, it sounds like you're more focused on house flipping than starting a home renovation business. I've seen flippers get in trouble by overestimating what a property can sell for after minimal work. Make sure you know the market, and don't think that you can just slap on some paint and expect a huge increase in value! Understanding what buyers in your area are willing to pay is crucial.
Are you planning to take on both the investor and contractor roles? That's a tough gig! It’s crucial to know what your financial goals are and how quickly you want to turn things around. If you're balancing a full-time job already, it might be hard to juggle everything when you're ready to flip.