Flipping properties is one of the most accessible ways for people at all levels of experience to generate revenue in real estate. The idea is simple: find an older, abandoned, or foreclosed property; purchase it at well below market value, make some renovations; and then sell it for a profit. Since the Great Recession of 2008, and now the pandemic, the demand for renovated properties has been on the rise, giving house flippers a number of opportunities to generate revenue. However, there are a few things you can do on your next property flip to increase the value of the home you are renovating so you can boost your revenue.
1. Smart homes are more than just a trend
People are busier now more than ever, and they want a way to eliminate wasted time. Smart home technology, from security systems to doorbells, refrigerators, thermostats, and even indoor lighting help home owners feel safer while also adding convenience to their lives. Setting aside part of the renovation budget for smart appliances and security measures can increase the value of a home by thousands or tens of thousands of dollars.
2. Energy efficient and environmentally friendly
“Going green” does not mean using materials that will biodegrade in a year or two. There are still ways to being environmentally friendly with your property flip. Try using repurposed materials for porches, accent beams, banisters, and more. At the same time, adding tankless water heaters, toilets with low-water usage, more efficient drainage, air conditioning, and more, can attract new home owners who are willing to pay a bit extra for peace of mind and greener living.
3. Use quality materials and fixtures
Everyone has seen property flip horror stories, with counters made out of particle board, no drainage, walls without insulation, and other big mistakes. There are ways to avoid these pitfalls without breaking the bank. Using bottom-shelf materials is a great way to rack up lawsuits while tanking your reputation. You certainly do not have to use gold fixtures and Italian marble in every room, but aiming for better than average and thinking of the structure and design from the point of view of a home owner can allow you to increase the quality, attract buyers, and raise your listing price.
At Golden Century Lending, we provide financing to property flippers to add the renovations and upgrades they want to increase the profitability of their projects. Contact our offices today to get the capital you need.