Photo by Jens Behrmann on Unsplash
Financing a college education can be challenging, especially if you’re returning to higher education as an adult. Flipping houses is one way to generate income while attending school. Here, Omninoct Properties shows you how.
Study Online for Optimal Flexibility
Going back to school is an excellent use of time, but that doesn’t mean higher education will fit seamlessly into your schedule. Consider nixing the commute and studying for a degree online instead. Online degree programs are convenient and often more affordable than in-person studies.
A business degree in management, communication, or accounting can elevate your house-flipping operation, too; take a look at this online option to get started. Remote learning also means you can be on-site while flipping properties.
Don’t Settle for a So-So Property
A fixer-upper might be on your wish list because you’ll be renovating. Yet settling on a so-so property could mean losing money or struggling to sell it later. Research your local real estate market to find out what buyers (or their renters) want. For most, that is likely to be the location.
Location is one of the most important features in real estate; while you can renovate a home, you can’t move it. Before buying a property, review local crime rates and scope out the neighborhood. Make sure the commute is manageable for you and future owners or tenants.
Explore Mortgage Options
Obtaining a mortgage could be the most challenging part of acquiring a property to flip. If you don’t have cash for the purchase, qualifying for a mortgage requires patience, paperwork, and, typically, a hefty down payment.
One way to make purchasing easier is to explore low down-payment mortgage options. Chat with a trustworthy lender to learn about your options and mortgage requirements.
Not all mortgage types are compatible with to-flip purchases, but a lender can explain the nuances. Other ways to finance a home flip include hard money loans, a home equity line of credit, or a cash-out refinance on an existing home.
Prioritize the Right Upgrades
Flipping a home does involve expenses, but choosing the right upgrades will get the most out of your investment. Most experts recommend following the 70 percent rule, which suggests buyers never spend more than 70 percent of a property’s “after-repair value.” That 70 percent guideline includes the purchase price and upgrade costs.
Therefore, selecting and budgeting for specific renovations is a significant part of flipping a home. Check out local listings to hone in on sought-after features to incorporate into your renovation.
Popular home amenities include hardwood floors, extra space in the home and garage, and finished basements, among other features. Select upgrades carefully—and stick to your budget as closely as possible.
Schedule Your Renovation Timeline
Renovations can take time, and unexpected issues and delays happen, but a thoughtful game plan can help avoid financial loss. HGTV’s expert recommends moving your flipped property quickly but also cautions against DIYing complicated projects.
Balance your budget, plot a timeline, then enlist professionals to complete larger tasks while you focus on smaller, more doable DIYs. Consulting with a contractor pre-purchase can also help start things off right.
Dive Into Real Estate Marketing
Though mortgages are tricky and renovations can be stressful, selling a flipped property is another challenging milestone. Even in hot markets, simply listing the home may not be enough to net your asking price.
Dedicate time to marketing efforts to boost the odds of selling at a decent profit margin. Setting up a website is a great way to showcase your property, and it can be free or cheap to do so. Good-quality images are a must, but you may get away with DIYing the listing photos with some practice, says Zillow.
With the right preparation, house flipping can help you afford a college degree. It might even become a side gig that you maintain after you graduate. Whatever path you choose, the experience you gain will be priceless.
This article was posted here with permission from Suzie Wilson