Flipping Older Properties

 4 Tips for Flipping Older Properties

Home flipping often involves homes that have seen a few decades and better days. In fact, the best purchases usually involve homes with good bones that have had time to sag and peel over the years. By making these houses both beautiful and cozy again, you can drastically increase your returns with the right renovation choices.

 

1) The Old Home Checklist for Flippers

• Plumbing
• Wiring
• Insulation
• Caulking and Weather Stripping
• Roof
• Major Appliances
• Kitchen Appliances
• Security

When selecting and planning to flip an old home, always run down the checklist of major maintenance and upkeep issues. Older houses tend to have some predictable problems that - when you are aware of them - are easy to plan for.

 

2) The Health and Safety Update

With your checklist notes in-hand, start with your health & safety update needs. Does the house need new wiring or outlets for safe use? Are the pipes about to rust through or leak heavy metals? Do the fixtures leak, do the lights flicker? Is the roof within 5-10 years before needing a new replacement?

These essentials are the majority of what home flipping can do to bring an old home back into the move-in-ready housing market.

 

3) The Energy-Efficient Makeover

Next, address the home's energy efficiency. Modern homebuyers know how to check for those little details like rattling windows and whistling door frames. These are also easy and affordable things to fix. Re-caulk the windows (and the bathrooms, while you're at it). Put new weather-stripping on all doors and on windows that open. Add more insulation to the attic and, if you open any walls, add or replace insulation there, as well. Just properly sealing the house can make a big difference in it's subtle comfort and long-term appeal.

 

4) The Technology Upgrade

Finally, consider the in-home technology. The HVAC and water heater are top priority, followed by the kitchen appliances and an included washer/dryer set. New appliances are the key to transforming a kitchen and winning over modern buyers.

If you have some extra time and budget, consider a few integral smart upgrades like a keypad door lock, smart thermostat, and wifi-responsive garage door opener to really enter the competitive market with your flipped transformation.

 

Old homes are a home flipper's bread & butter. Once you master transforming an older, shabby house into a beautiful modern-feeling home, you'll start seeing the resale revenue you got into the industry for.

Flipping Homes in Historic Areas

 How to Flip Homes with Historic Area Restrictions

Home flipping is an essential way to bring failing homes back into the housing market - a vitally important role with the housing shortage today. One of the biggest challenges for home flippers is working with homes in historic areas with renovation restrictions.

How can you make a home warm and welcoming again without compromising it's incredible history? We have a few helpful tips to share.

 

Get to Know Your Historic Restrictions - And Why

The first and best step is to really get to know your historic restrictions. Take a walk-through with a regulatory member of the community. Let them tell you the story of the house alongside the rules so you can admire both the spirit and letter of the regulations.

 

Ask Your Neighbors for Contractor Recommendations

You're going to need specialized teams that already know the historic area restrictions and how to maintain a house within them. So ask your neighbors - also residents of historic homes - who they hire. Their roofers, plumbers, and builders will have the years of experience with the neighborhood that you need to draw upon.

 

Remove, Restore, and Replace Original Materials

You can remove cracked features and add modern amenities (like between-wall insulation) without actually getting rid of the original surfaces. Remove, restore, and replace materials in the home. Add that insulation, but then replace the original wood paneling - perhaps a few inches out from its original position. Fix the cracked plumbing and then put back the original faucet and handles. This keeps the house historic, with new and functional internals. Like a classic car with a new engine.

 

Updates that Embrace the Historical Style

Finally, if you need to make changes, ensure every update embraces the historical style. That old sink might be too cracked to restore, but find a new one of the same shape and material as a replacement. Seek antique restored fixtures from the same time period or to recreate historic molding designs instead of using standard modern pieces.

 

With determination and a love of history, any home flipper can renovate a property with historic area restrictions. All you need is the local insights and an appreciation for the home's original style.

 

Complete Checklist for Potential Real Estate Investments

 A Complete Checklist to Refer to Before Putting an Offer on a Potential Investment Property

o If you are thinking about putting an offer on an investment property, the most important thing you can do is "run the numbers" first. What does this mean? This translates into creating a spreadsheet of what your expenses will be on a monthly, quarterly, or yearly basis. You should also try to account for expenses that are billed on an as-needed basis. Here's a quick checklist that you can refer to help start you on this journey.

Monthly Expenses

• Mortgage. Evaluate what your expenses will be by getting pre-approved before putting an offer on a property.
• Escrow. This includes property taxes and insurance costs.
• HOA or Condominium Fees. These may be collected on a monthly or quarterly basis.
• Utilities. If you include utilities ( electricity, cable/phone/internet)  in your rent payment, this will still be an expense for you.
• Security Fees. This refers to a home alarm system.
• Property Management Fees. If you employ a service, this could be a set monthly fee or based on the cost per rental. 

Quarterly Expenses

• Trash Removal. In some areas, this is not included in tax payments.
• Pest Control. Depending on the area of your investment property, this could be a contract you have with a local service for a monthly or quarterly service.
• Water Service. This expense is regularly calculated quarterly.

Yearly/Other Expenses

• Contracts. If you decide to get a contract for things like appliances, hot water heater, air conditioning and heating units, in order to keep an eye on aging units. 
• Service Calls. This could include fixing a garbage disposal, electricians or pest control. If you don't have a contract, these will be calculated on an as-needed basis.
• Landscaping/Snow Removal. These expenses are billed only at the time when service is rendered.
• Large Purchases. This could include oil, natural gas or propane delivery, replacement furniture if you offer a furnished property, replacement/service for broken appliances or units.
• Tennant Changeover Fees. This could include the cost of painting, cleaning, trash removal and credit checks.

Depending on whether you are purchasing a vacation rental unit or a long-term rental property, could wildly influence where the bulk of your money is allocated on your spreadsheet. It could also determine if this unit is really the great buy it looks to be at first glance. 

Costly Rental Property Features

 Four of the Biggest Features in Rental Properties That Lead to Hemorrhaging Money

Owning a rental property can come with hidden or unforeseen expenses. While many property owners factor in things like taxes, HOA or condo fees and insurance, the real cost is the maintenance and upkeep of the property or unit. If you are considering purchasing property, keep these four things in mind. 

Hot Tubs and Swimming Pools

Hot tubs and swimming pools demand constant oversight with regards to maintaining PH levels, cleanliness and repair/maintenance. It is important to have them under the care of a professional who can identify problems before they become too costly. 

Decks, Docks and Exterior Structures

Property owners should regularly inspect any structures that are constantly exposed to the elements. The potential for damage,  including anything caused by weather or animals, can be a hazard to renters. It can also be difficult to repair. 

High End Appliances

While many homeowners want their kitchens to look nice in photos and provide top of the line appliances for potential renters, consider whether it is worth it in the long run. In some cases, finding replacement parts or repairing an expensive appliance may take a lot of time. In this case, the renter would probably have preferred a more off-the-shelf, easier to service item. 

Older Heating or Air Conditioning Units

When purchasing a rental property, consider the age of these units. Many of these units have a life span of 15-25 years. While you may be able to get away with replacing parts as needed for a little bit of time, all those service calls and up and no one likes being without air conditioning or heat during extreme temperatures. 

Remember that when purchasing a rental property, to be sure to see not only if the items mentioned above are in good working condition, but if so, how much it will cost to repair or replace these items in the future. Next, set aside a small savings account to help cash flow these items so you are prepared to fix them as needed.