Flipping apartments for a profit has become an increasingly popular trend in the last couple of years. Instead of starting a business people decide to invest in an apartment or house and sell it for a higher price. This is activity is particularly profitable in huge cities like New York. One of the capitals of the world, New York is a massive economic, cultural and media center. Due to a constant influx of new residents, New York has an ever-expanding real estate market. Therefore, it holds great potential for you to make profits on house flipping. Many New York neighborhoods like Greenpoint, St. George, Hudson Yards and Clinton are witnessing a growth in popularity, and present a potentially good investment opportunity. However, if you wish to move to one of these neighborhoods, try contacting some of the local moving agencies like Clinton moving company. Hiring professional movers is the first step towards a stress-free change of the address. Therefore, we will use this article to unveil some of the things you should be familiar with before you start flipping houses.
What does it mean to flip the apartment and how to do it?
Simply put, it means to buy an apartment or house and then to sell it for a higher price to make a profit. There are two ways in which you can “flip” a real estate. One way is to buy a property, invest in repairs and cosmetics and then to resell it for a higher price. Another way to make a profit is to get informed about which neighborhoods are expected to become popular. Purchase the property in a hip neighborhood and wait for the prices to rise. Make no upgrades just hold the apartment for few months. When people search for new neighborhood to relocate to, they consider many different factors:
- Costs of living
- Job opportunities
- Crime rates
- Quality of schools
- Public transportation
- Various Amenities
Undoubtedly, you must take these factors into consideration as well. Try to think like someone who is searching for a place to live when you decide to start flipping houses.
Hire a good real estate agent before you start flipping houses
The best way to understand any real estate market is to consult a local real estate agent. They do this for a living and are certainly more qualified than you are. It’s the same as moving. Some things like heavy lifting are better left to professionals. If you own a piano, you will call piano movers NYC, because they are more qualified. The same applies to real estate agents.
So how to find a quality agent? First of all, ask your friends for a recommendation. If they don’t know consult the internet for the advice. Take walk down the neighborhood, you will probably find local agents’ contacts glued on the local bus station. Inform yourself about the traits of a quality real estate agent. In short, you should hire someone who is not in business part-time, but someone who has fresh information and good negotiating skills.
Plan your budget wisely
Needless to say, house flipping is a risky business. Therefore, you must calculate your expenses to see if the investment is a worthy one. Generally speaking, seasoned investors follow the 70% rule. This means that most you should pay for a property is 70% of its value after repairs minus the costs of those repairs. This is the equation you should follow. Likewise, you need to set the price correctly when selling the house. If you demand too much for your property, it could end up sitting on the market for too long. The potential buyers will then wonder if there is something wrong with that property.
Hire quality contractors before you start flipping houses
Like we already pointed out in order to make a profit on the property you will have to invest in refurbishing. The trick is to make all the necessary repairs that will boost the value of your home with minimal expenses. Inspect the property for pests like woodworms and mice and pest proof the house. Fix structural problems like mold, leaking pipes and electrical installations. Repaint the walls, but use neutral colors. Remember that all these repairs require skilled contractors. Replacing the tiles, kitchen cabinets and other furniture are all pricey investments that do not pay off. Especially because there is a possibility that the new owners might find your taste tacky. In short, you should make the property fully functional, but leave it empty, so that the new owners can decorate it according to their own wishes.
Some additional tips
People search for apartments online. Therefore, you should hire a quality photographer. Don’t let the potential buyers discard your property because of poor photos. Remember that photos serve to attract people to come and see the property. Next, lighten up the space. Repair the lighting and increase the wattage of your light bulbs. Good lighting makes the space look bigger and crates that atmosphere of grandeur and luxury. Point out the advantages that your neighborhood has to increase the attractiveness of your property even more.
Making a profit on selling apartments is a risky business, but it can pay off greatly if you make smart decisions. For that purpose, we have assembled this list of basic strategies and tips you should know before you start flipping houses. To sum up, the first step is to spot the properties that have potential. Choose a reputable neighborhood, because that is something you can’t change later. Next, carefully plan your budget for renovations. Finally, try to present your property in the best light possible. Good luck!