House flipping, or buying a fixer-upper, is not just for the professionals. If you love watching Chip and Joanna Gaines as they go through the process of buying and flipping homes, then you understand it’s all about having a plan and trying to stick to it. If you want to buy a fixer-upper and try house flipping, it is vital to have a budget in place and understand what you are getting into when it comes to repairs. Time is essential when you are house flipping, as paying a monthly mortgage bill will cut into your overall profits.
Plan Your Budget
When you are flipping a house, a realistic budget must be established. Consider the price of the property, the cost of renovations, and how quickly the repairs will be accomplished. You will need to think about closing costs and unexpected repairs that always come up when you are trying to flip a home. If the price is too high for the renovations needed, you will want to pass on the project. If you are going to live in the home, plan your budget based on the repairs that need to be made to live in the home. You might be able to afford a more expensive home if there are repairs you can budget for later.
Figure Out What You Can Do Yourself
If you have skills, plan out what you are able to do on the home renovation yourself. Anything that you can do without having to pay a professional will add to your profits. Pay attention to the time you have to complete tasks, and leave time to learn from mistakes that you are likely to make. It is possible to save time and money when you are able to fix and repair issues on your own within the home. When you need a license to complete a job, such as electrical work or plumbing, allow a professional to do the work for you.
Find a Reputable Contractor
When you are not a contractor, you have to find a reputable contractor that can do all the necessary work for you. It takes time and money to have a professional doing work for you in a fixer-upper, and you want to be sure that you have someone working on your home who has a good reputation for getting the job done on time. Do online research and ask friends and family about potential contractors to hire for the job. The contractor you have working on your home can make or break a project, and it is important to find a contractor you can trust.
Plan for Your Future
If you are buying the fixer-upper for yourself to live in, plan for any repairs that might be needed in the future. Set aside money every month for future repairs so that you have what you need when it comes time to make repairs. When you are not flipping the home, you want to focus on repairs that make the home livable first. As you get used to your new home, you can decide what renovations you want to make to improve your living space.
Good preparation will make it easier to buy a fixer-upper and make any necessary repairs. As you prepare your current home for sale, contact Mid America Mortgage about your options. You can be shopping for your next home with a pre-approval from Mid America Mortgage, and you will know what your budget is with your pre-approval in place. Whether you want to get into house flipping, or you want to purchase a fixer-upper to live in, you will want to find a mortgage company that will work closely with you to meet your needs.
