The days of flipping houses in Orlando are back in a big way. Investors have their ears to the ground just waiting for the next good deal to hit the market so they can snatch it up and make a nice profit on. The increasing amount of Orlando short sales and REO properties on the market are attracting house flippers like blood in shark infested waters.
Many re-habbers took a beating when the market turned in 2007. Some were caught with their pants down holding several properties that were freshly renovated and instead of flipping them for a large profit, most of them ended up as Orlandoshort salesor REO properties.
Re-habbing can be tricky if you don’t know what you’re doing and there’s a million things that can go wrong. You really need to know your numbers and give yourself a huge cushion as far as how much you price it for.
5 tips to keep in mind when re-habbing a house
1- Buy your investment property at the right price- It’s crucial that you buy your investment property for the right price or you could end up losing a lot of money in the end. Be realistic with your numbers and always, always give yourself a cushion.
2- Keep away from funky floor plans– Nobody wants to live in a house with a weird layout. Even if you think your getting a deal of a lifetime it can be very hard to get top dollar for a house that doesn’t have an appealing floor plan.
3- Don’t take on too big of a project- Keep it simple, choose an investment property that doesn’t need any major structural repairs. Kitchen and bath remodels are OK but major repairs should be left to experienced investors.
4-Hiring contractors– Make a list of the work that needs to completed and get at least 3 estimates. Make sure to ask for references from any contractors you hire and and be sure to get everything in writing. It’s crucial that you get the work done as quickly as possible, come up with a realistic time frame for the work to be completed and make sure your contractors commit to it. If not you could end up shrinking your profit margin substantially.
5- Price it correctly from the start– This is where your Orlando realtor comes in to play. Pricing your investment property is key and should be done by an experienced real estate agent that specializes in the area of where your property is located. You don’t want to price it too high because it will take longer to sell. Remember, each day the property sits on the market is costing you money.
Even though you should never rely on appreciation when buying an investment property, the Orlando real estate market provides the perfect conditions for flipping houses right now. Property values are steadily going up in most parts of Orlando and if your able to find an Orlando investment property at the right price, you could turn it into a nice profit. Orlando realty is hot right now and smart investors are taking full advantage of the current market conditions.