How to Flip A House In Hampton Roads

Posted on: April 15th, 2017 by , No Comments

Flipping and rehabbing houses in Hampton Roads is one way to dive into real estate investing. Learn everything you need to about how to flip a house in Hampton Roads!

Rehabilitating homes is one of the most popular methods to earn money in the real estate industry without becoming a licensed agent. Unlike buying or selling properties, investors look to purchase homes below market value or ones with substantial resell appeal to flip. While flippers are diverse in the properties they acquire and the starting amount used to invest in a home, most of them agree on a few key fundamentals when deciding to flip a house in Hampton Roads or surrounding areas. Their flip houses tips include finding the ideal home at an unbeatable price, beautifying the property with various repairs, and reselling the property at a considerably higher cost.

Finding the Best House to Flip

house to flip a house in Hampton Roads

Many local investors begin their careers in real estate investing when they actively search for a house to flip with the most rehab potential. Learning how to flip a house in Hampton Roads for the first time can be overwhelming without a particular property in mind, and many novice flippers cannot fathom the full cost of repairs without being on site first. In any case, knowing where to look for the ideal house and prospecting underpriced properties is the first step in how to flip a house successfully.

The best component of living in the age of technology is the readily available wealth of information provided by the internet. While online sources can range from trustworthy to totally unreliable, the internet is home to a great tool for flippers: the Multiple Listing Service (MLS). This online database offers all relevant information on houses for sale in the nation. Whether they are currently under a listing contract with a real estate firm or an FSBO, the database offers the ability to create an advanced search for investors seeking specific listing requirements. Though MLS is only accessible to licensed realtors with a costly subscription, the knowledge can be shared by aligning yourself with a realtor or other licensed individual.

Utilizing the MLS to flip a house in Hampton Roads presents certain advantages before committing to the purchase. The listings provided online will typically have more information about the property, include pictures of the interior, and present previous asking prices. This will allow a budding flipper to make a more calculated decision on the risk and reward of purchasing a property, especially if performing an inspection is out of the question. Also, the MLS is a great tool to set a final asking price for the property’s resale. The database allows users to compare similar homes within the same neighborhood. This is essential for number-crunching the overall cost of the rehab.

Auctions are another great source for finding the right house to flip. Tax auctions and sheriff’s sales present a slew of for sale homes that have been foreclosed on in your immediate area. Though auctions offer detailed descriptions of the homes, they are speedy sales, and flippers are unable to perform inspections beforehand. It’s recommended to prepare a list of comparable properties and their values prior to the auction to formulate the top bid in your budget. The time and date of an auction varies but can be found on the city’s website.

With the influx of flippers searching for the ideal home in the last decade, competition for these homes has increased. While the MLS is a fast track to information about properties and auctions have become increasingly popular, many investors are looking for more creative methods to acquire the home with the best potential. Direct mail marketing, cash buyer signs and banners, and even browsing the local newspaper ads have been viable ways to find the ideal home to flip.

Considering the Repairs to Flip a House in Hampton Roads

repairs to flip a house in Hampton Roads

When buying an underpriced or foreclosed property, repairs aren’t the exception; they’re the expectation. It’s why huge homes in great neighborhoods can be affordable to everyday buyers. Repairs range from minor to major, and can cost a flipper between hundreds and thousands to fix before the resale. Due to the expansive nature of the condition of a property, it’s necessary to inspect, assess, and calculate the cost of repairs before closing. Whether it’s cosmetic repairs or major home fixes, considering the possible repair cost of a flip is essential to earning a profit at closing.

For first time home flippers, buying a more structurally sound home is a must for the quick flip opportunities. These properties include minor repairs like cosmetic changes and updating appliances, and can be completed by the flipper without hiring outside contractors. They can be beatified without an exorbitant amount of time, money, or effort. While these types of houses typically won’t earn the big bucks, they’re great starting points for novices and highlights the overall flipping process. The ultimate goal for the quick flip is creating an impeccably clean and maintained home with mass appeal, so it’s wise to fine-tune the finishes.

On the other hand, experienced flippers with reliable contractors should tackle larger projects needing severe repairs. These homes are often cheaper and provide a greater reward, but at a much higher risk. The most common major repairs to look out for in these properties include new roofing, system replacements, plumbing changes, or a complete cosmetic overhaul. Though flooring can be a relatively cheap fix, it can become financially overwhelming if the whole house needs to be re-floored. To ensure a smooth rehab process, thoroughly inspect the property before purchasing it.

The Art of the Sale

getting money to flip a house in Hampton Roads

Arguably the most important step in a flip is the last one: selling the finished product. After months of searching for the right property, making the costly repairs, and marketing in every manner possible, it’s time to sell. It’s the cathartic culmination of all the hard work investors put into a flip, and it’s the single reason flipping is a national phenomenon. The day of closing is an enormous payday for flippers. But the only way to experience that elation is by ensuring a sale that matches or exceeds asking price, and that requires skill.

Selling a rehabbed home that will not only cover all expenses but earn enough profit to compensate for invested time is tricky. It requires expertise to find and purchase the ideal home with the greatest potential for profit. It also demands the ability to fix up that house in a way that appeals to most buyers. This knowledge comes from an experience in the area and the flipping process as a whole. For new investors seeking a quick flip, consider contacting a mentor in the area for additional insight. Like most financial endeavors, knowledge is the key element to flip a house in Hampton Roads.

Want to Buy a House to Flip?

If you’re interested in house flipping, then you’ve come to the right place. At Hampton Roads Wholesale, we specialize in wholesaling houses. We have the perfect investment properties for you to flip, so you can grow your real estate investing business. Give us a call today at (757) 905-4030! Or, stop by our website to become a member of our buyers list so you can get updates on our investment properties for sale. We can’t wait to do business with you!