Simple Ways to Get More Money from an Investment Property

Flipping houses is becoming big business. Unfortunately, it is a buyer's market these days, so the competition to sell an investment property is huge. Here are some tips to prevent your flip from being a big flop.

What is "Flipping a house?" Flipping refers to a person or people buying a house at a good price as an investment property with the intention of selling it for more than they have paid with the intent of making a profit.

Firstly, location is huge when deciding on purchasing a property to flip. One great way to find properties to resell for a profit is to research the area. Look for neighborhoods in the process of revitalization. There are plenty of neighborhoods that have gone a bit downhill that the community or the local government has decided to "take-back" in order to revitalize. Look for investment homes in areas where there are working class or middle class families starting out, where new shopping malls or schools are being built. A simple search of where your local government is spending a lot of their money (this is public record) is a good start.

Before buying a property with the intention of reselling for profit, get a professional to inspect it. You really aren't going to want a property that is falling down on itself. It is way too much work to rebuild an entire home unless you want to demolish and sell the land (only if land prices are going through the roof). Ideally, you want a property that is structurally sound, but just looks bad. Cosmetic flaws really degrade the value of a home, but are a relatively easy fix that can bring big profit.

To save money on the investment you make to repair your flip house, enlist the help of friends and family to help you with a lot of the labor. Be realistic though. If you are not a contractor and know nothing about roofs, don't put on a roof yourself. That is common sense. There are lots of things though, that almost anyone can do that can really increase the value of the home you are trying to make a profit on by selling. These things include painting, laying tongue and groove laminate flooring, re-tiling backsplashes and bathroom walls, caulking, replacing hardware, knobs, and doorknobs, replacing blinds, among other things.

For materials, you can find many items used in very good condition. The two most important places to concentrate on when fixing up a flip house, is the kitchen and the bathroom, but often those are the most expensive! Search online on websites like www.craigslist.org and your local freecycle group (www.freecycle.org) for materials. There are several people remodeling their kitchens and bathrooms who are either throwing away or selling for very inexpensively, items in nearly new condition that can increase the value of your flip. This includes appliances, countertops, toilets, sinks, kitchen cabinets, even plants and garden items for landscaping purposes.

Landscaping is very important in presenting a home you are intending to sell for more than you purchased for it. It is so important that the "curb appeal" is high. Curb appeal is basically how attractive your home looks from the front, or to people driving by looking at that *for sale* sign. New paint, green lawn, pretty landscaping all add to the curb appeal of your home.

Lastly, when all the repairs are made and you are ready to list, consider "staging" your home. Staging is furnishing it to give people an idea of the possibility of what they can do with their home once they've bought it. You aren't offering the furnishings with the home, you are simply decorating it much like a model home so that people can really see themselves in the home --- the furnishings should be tasteful and neutral and play up the best aspects of the home.

Good luck working on your investment property and remember that your hard work can pay off big! Happy flipping!