More than 5.6 million houses were sold in 2020 in the United States alone. Many more houses have sold since then and a lot of them are houses that have been flipped. House flipping usually entails buying a house for cheap, fixing it up, and then selling it for a higher price to gain a profit.
While flipping a house can be complicated at first, it can also be very beneficial once you figure it out. But what should you know about house flipping and how does it work? How can you know that you’re making the right decisions to make a profit on the houses that you’re investing in?
Keep reading and learn more about the benefits of house flipping below.
The Perfect Part-time Job
If you feel that you’re in a dead-end job and that you’re not making the money that you hoped you’d be making, learning how to flip a house may be the perfect part-time job for you. Many people think that flipping houses will take up all of their time, but this isn’t true. Flipping houses is actually quite a passive job and you can easily pace your work with your real estate investments throughout the week.
Many people use house flipping as an additional job on top of their regular full-time job. This, of course, can come with a variety of different benefits. Quitting your full-time job can be scary and flipping houses may not be a good idea for a full-time job right away.
Rather, it is the type of job that you need to work on for a prolonged period of time until you can start to make a lot of money. For that reason, it is a good idea to keep your main job but do house flipping on the side. That way, not only do you get your regular salary from your job but you can make some extra money on the side with house flipping.
Another great thing about house flipping is that you can pretty much do it whenever you feel like it. You can choose a few days out of the week to scout out a good house to flip and you can choose a few days to work on that house before selling it. You can completely create your own schedule so that house flipping won’t get in the way of your regular job.
After all, there is no time limit on flipping a house. As long as you buy a house for a cheap price, fix it up, and sell it at a higher price, you’ll make a profit. Of course, the exact profit you make will depend on a variety of factors such as the housing market, how many houses you flip, and so on.
Whatever the case, flipping houses is a great thing to do if you want to explore options that go beyond your regular everyday job. If you really like house flipping and happen to be good at it, you might even be able to turn it into a full-time job. However, this is usually the case when you finally start to make a lot of money at house flipping and if you are flipping several houses at one time.
Once you start doing that, tens of thousands of dollars will start turning into hundreds of thousands of dollars. Once you’re making that much money, you can quit your regular job in favor of house flipping if you like the process so much. This is not to mention that when you flip houses, you are your boss, so you can set the rules and flip houses exactly how you want.
Low Startup Costs
A lot of businesses require a lot of money to start. For example, if you wanted to open up a shop, you would need to go through the trouble of getting all the right licenses, permits, and so on. You would also need to buy the inventory to pack your store and maybe even pay for advertising so that people will go and visit your store.
Of course, all of this adds up to many thousands of dollars that you may not be willing to part with. Fortunately, with house flipping, you won’t need to worry about any of this. This is because house flipping is a very straightforward business.
You won’t be selling any inventory, you won’t need any licenses, and you won’t need to waste money on frivolous things just to get your business started. Instead, the only thing you will be selling is the house you decide to buy and flip.
This is what makes house flipping so simple. All you need to do is focus on the house that you plan on flipping. Of course, this doesn’t necessarily mean that you can sit back and relax all the time when you’re flipping houses.
You will still need to do some work to make sure that your house is going to sell at the price you want. Many people like to buy houses that are practically in shambles because they can buy them for very low prices. After fixing up the house until it is just like any other house, if not better, you can then sell that house for many thousands of dollars more than what you bought it for.
What You Need to Know
Of course, fixing up a house will take some work, especially if the house is in very bad condition.
You may need to replace the floors, paint the walls, replace the roof, get new countertops, and so on. You can do this yourself or decide to hire professionals to help you.
Of course, doing it, yourself is the cheaper choice. However, if you don’t have enough time to do this or if you are not very good at repairing and renovating things, hiring professionals would be the better option, even though it will cost you a bit more money. Professionals can do just about anything you want from tearing your own walls, putting up new walls, fixing the floors, the roofs, and so on.
Even if you do hire professionals, the entire process will still be quite a bit more accessible and affordable than starting a traditional business with inventory, licenses, and so on. You also have the freedom to go at your own pace with house flipping, so you can decide whether you want to take it slow or flip as many houses as fast as you can.
Of course, if you sell houses at a faster rate, you will make money faster, but if you are not in a hurry to make money, then this may not be important to you.
Many people go into the house flipping business for the money. This is because you can make quite a lot of money with house flipping, but only if you know what you’re doing. If you are careless and don’t calculate how much money you are investing into the house, you may not make as much money as you’d like.
Besides that, selling your house at the right time is also important. If you keep a close eye on the housing market, you can start to detect patterns in the prices of houses. For example, if house prices are only continuing to go up and up, this is a good sign that you will make a big profit on your house.
On the other hand, if the housing market is unstable or if house prices are crashing, this would obviously be a bad time to flip a house since you might even lose money on it. But if you sell your house at the right time, you can easily make several tens of thousands if not even hundreds of thousands of dollars just by flipping a house.
You can make even more money by flipping several houses. This is something that professional house flippers like to do. However, it is not recommended for those who are just starting out in the realm of house flipping.
Instead, you should start with just one house and figure out all the details of how to flip it properly.
What to Know
For example, you’ll need to figure out what you need to repair or renovate so that the house will sell for a lot of money. At the same time, you shouldn’t invest too much money into the house because you might end up not getting a lot of money in return or you might only end up breaking even.
You should only move on to flipping more than one house once you get the hang of flipping one house at a time. This is because flipping more than one house can be quite a challenge to manage. After all, you need to keep track of several different things to make sure all of those houses get the renovations they need and make sure that they sell at good prices.
But once you master the art of doing this, you can certainly move on to flipping two, three, or even four or more houses at a time. Once you start doing that, you can easily start making hundreds of thousands of dollars just by flipping houses. At that point, it should be no problem to quit your regular job and instead spend most of your time flipping houses and making money.
This is also quite a reliable way of making money. After all, people will always need homes to live in. By fixing up houses that no one wants to live in and making them perfectly inhabitable, you are in a way, giving back to the community and making money at the same time.
Personal Development and Growth
What a lot of people don’t realize is that they can go through a lot of personal growth and development when flipping houses. This is because flipping houses forces you to learn things that might not have even occurred to you before. Each time you flip a house, you will learn something new about houses and how to improve them.
For example, when you first start flipping houses, you might not know where to start. Should you start with the floors or the walls or the roof or something else? However, once you get used to flipping houses, all of this will come to you in a more natural manner.
You will also be able to improve some of the skills you already have. For example, you may already be somewhat skilled at time management, but flipping houses will only improve this skill. This is because you can set your own pace and decide how fast you want to flip a house, especially if you want to keep up with the housing market.
You will also learn more about how to delegate tasks. This is not to mention that you can learn how to fix and repair all sorts of things like water-damaged floors, chipped walls, broken sinks, and so on. Once you get the hang of house flipping, you’ll become a more capable and skilled person overall.
All About House Flipping
House flipping doesn’t have to be as intimidating as you might expect. Instead, house flipping is a great way to make some extra money on the side and, if you really want, you can even turn it into your full-time job and make quite a lot of money at it.
This is not to mention that it is a great way to develop yourself as a person. And, of course, hiring professionals to help is always a good idea. Contact us here to learn more.