Do you love real estate? Have you always wanted to learn about how to turn a profit flipping property in NY? We’ve put together some great tips to help get you on your way to making excellent profits by buying and selling properties in NY.
The idea of flipping houses has grown over the past few years, partly due to reality TV shows and partly because more and more people have fallen in love with the idea of getting their hands dirty, doing the work and (if all goes well) turning a great profit.
Before you dive in head first, you should make sure you understand exactly what you are getting into.
Know Your Market
Real Estate Markets vary throughout the US. What is happening in your local market, might be different than what’s going on in the country as a whole.
- Are prices rising or falling?
- What are new facilities and infrastructure is in the works?
- What about the area will attract buyers?
If you buy a home in the area, does in make sense to hold and rent the property until prices rise even further.
Know Your Numbers
Do you know what an ARV is? This is the value of the home after repairs and upgrades have been made. You need to figure out this number by studying the market and working with a contractor who can accurately price out what it will cost to fix up the home.
You will also need to factor in the time it will take to complete the work and sell the house. While you are the owner, you will be the one responsible for the taxes, utilities, the mortgage (if you have one) in addition to the costs of materials, labor and so on.
Know Who Your Buyers Are
What is the demographics in the neighborhood? Are there families, retirees, outdoor lovers or students in the area? What will they be looking for in a home?
You will want to buy a home that that has features your leading demographic is looking for.
If you have young families buying in the area, focus on creating an open family room or finish the basement. If you have retirees, make the house easily accessible and the yard low-maintenance.
Price To Sell
Be realistic about what you can sell the home for. When you are calculating your ARV, don’t inflate the price to what you hope to get. When flipping a home, you want to sell it QUICKLY!
After doing your homework, you should know what homes are selling for in the neighborhood. Make sure you are listing your home at or slightly below these amounts.
Are you ready to turn a profit flipping property in NY?
If so, it is important to spend time thoroughly educating yourself and making sure you are aware of all market factors that will be involved.
If you are new to flipping and real estate investing make sure you work with a professional who can guide you through the process so you don’t end up losing a lot of money!