The key to flipping properties successfully is to cut the expenses as much as you can, and yet do a makeover well enough to up the price of the house. Some people get carried away with the renovation part, hire too expensive contractors or use too expensive materials and lose money in the end. Here are a few tips on how to avoid similar mistakes and get the most out of your property.
Find less expensive materials
Your local hardware or building-supplies store is probably filled with materials and merchandise that they can’t sell. These overstocked and discontinued materials are perfectly fine and usable and the store is probably eager to get rid of it. Once you get to know the manager or the store owner, you can ask them and they will probably sell it to you for a fraction of the price you would pay otherwise. The same goes for builder’s-grade materials. The difference between those and store-grade once is often negligible but they’re much cheaper. If you install and maintain them correctly, no one will know the difference.
Hire apt students
College or high school students are always looking for jobs during the summer and they’re often turned down, because they don’t have enough expertise or there simply isn’t enough work. You can use their help for some less complicated tasks and it won’t cost you much. Mowing the lawn, trimming the threes or planting flowers can easily be done without training and without fear that someone can get hurt. The same goes for vacuuming or window cleaning, of course. There’s also a lot of things to declutter, from attics to basements, so you can hire a couple of students to do that for you in matter of days.
Bathroom renovation
Hiring inexpensive labor isn’t always a good idea. When it comes to more complicated work, like the one needed to restore the bathrooms, it might be best to hire professionals. The repairs you might have to do if something goes wrong with the pluming could be far more expensive than the cost reduction you get for using unskilled labor. So, you should evaluate your return on the investment and find a trustworthy yet affordable contractor for the job, advise the guys at Blue Lagoon Bathrooms.
Using the right tools
If you’re in flipping properties business for a long run, it might be a good idea to buy your own tools (or at least some of them). Renting the tools means you have to waste time to return them and you have to take extra care, because if you break it, you pay it. And obviously if you want contractors to bring their own equipment, you pay extra for it. Besides the usual, like hammers, nails, screwdrivers and wrenches, you might want to think about investing in more serious equipment such as heat guns, power washers or a couple of cordless drills. These will be probably used often and you can learn how to operate them yourself.
Schedule multiple projects at once
Most skilled laborers charge for simply showing up (or for the transport of the necessary tools). This can add up to a lot of money, especially if you are working on a couple of properties at once. Wait until a couple of projects pile up, create a list of tasks for your plumber, carpenter and electrician and invite them to do them all in one trip. You can also save money by making a deal with a contractor to work on all of your properties if he lowers the price a bit.
Flipping properties can be a lucrative venture if it’s done right. Try to cut costs wherever you can, but don’t diminish the quality of your work and you will do great.
