You've heard it said that it takes a lot of planning and hard work to make money restoring houses for resale.
I contend that turning a profit is much easier than you may think.
The current market certainly doesn't help.
It can, however, be overcome if one just keeps a few simple points in mind.
The purchase price is everything! When buying a house you have to look at the neighborhood and surroundings that will affect the resale value.
The most important thing is the purchase price.
You could spend months developing the perfect plan, redesigning the layout, and scheduling work only to find your profits slim to none.
Planning is a must, but make sure you buy right.
There are several ways to get a good price.
Look for the worst house in the best neighborhood.
Find a house that needs more work than most would be willing do.
These houses can be a challenge, so be ready to do a lot of the work yourself.
Do your research and know exactly what will need to be done so that you can come up with a realistic budget before you buy.
Be patient.
Don't just buy the first house that seems like a good deal.
Get lucky: talk to people you know.
Often a friend will know a friend of a friend who wants to sell their house but hasn't listed it yet.
Check obscure sources, and stop and talk to "for sale by owner" property owners.
They often have their house listed for less since they don't have to pay a commission.
Once you have a property, decide who your buyers will be.
You have to cater to their desires.
Little things like tile floors in a bathroom make a big difference, but don't go overboard.
If the house is not going to sell for much in the end then it is likely that the buyer will be happy to have a clean house with new paint.
Sometimes this is all you need.
If the house doesn't sell in a timely manner you may end up renting for a while.
Keep this in mind, as renters have much lower expectations.
If you think this may be a possibility then plan on lower end fixtures, flooring, and even paint.
There is a chance some of these things will have to be repaired, replaced, or redone.
Consider restoring for the medium term.
If you buy and renovate a house with the intention of renting until better times then you can really go bare bones and even plan on a quick redo just before the future sale.
Low end appliances can be easily replaced.
Vinyl flooring can be upgraded to tile.
A few designer colors can be added in the future as well.
You can even plan an incomplete restoration when renting.
Whereas a buyer might really appreciate knowing that the roof has a new thirty year warranty, a renter won't care as long as the roof doesn't leak.
Plan from the get-go to replace when you are ready to sell.
First impressions count! When a prospective buyer comes to look at a house and sees zero landscaping and a shabby, unkempt lawn they will have a bad taste in their mouths before they even get inside.
A few shrubs and some tidy mulch will go a long way towards making that first impression a good one.
Plants are cheap and just about anyone can operate a shovel.
This has been a quick glance at some things that can help you turn a profit even in a down economy.
Remember: buy right, don't overdo it, keep your options open (rent or sell), and make a good first impression.
Good luck.
I contend that turning a profit is much easier than you may think.
The current market certainly doesn't help.
It can, however, be overcome if one just keeps a few simple points in mind.
The purchase price is everything! When buying a house you have to look at the neighborhood and surroundings that will affect the resale value.
The most important thing is the purchase price.
You could spend months developing the perfect plan, redesigning the layout, and scheduling work only to find your profits slim to none.
Planning is a must, but make sure you buy right.
There are several ways to get a good price.
Look for the worst house in the best neighborhood.
Find a house that needs more work than most would be willing do.
These houses can be a challenge, so be ready to do a lot of the work yourself.
Do your research and know exactly what will need to be done so that you can come up with a realistic budget before you buy.
Be patient.
Don't just buy the first house that seems like a good deal.
Get lucky: talk to people you know.
Often a friend will know a friend of a friend who wants to sell their house but hasn't listed it yet.
Check obscure sources, and stop and talk to "for sale by owner" property owners.
They often have their house listed for less since they don't have to pay a commission.
Once you have a property, decide who your buyers will be.
You have to cater to their desires.
Little things like tile floors in a bathroom make a big difference, but don't go overboard.
If the house is not going to sell for much in the end then it is likely that the buyer will be happy to have a clean house with new paint.
Sometimes this is all you need.
If the house doesn't sell in a timely manner you may end up renting for a while.
Keep this in mind, as renters have much lower expectations.
If you think this may be a possibility then plan on lower end fixtures, flooring, and even paint.
There is a chance some of these things will have to be repaired, replaced, or redone.
Consider restoring for the medium term.
If you buy and renovate a house with the intention of renting until better times then you can really go bare bones and even plan on a quick redo just before the future sale.
Low end appliances can be easily replaced.
Vinyl flooring can be upgraded to tile.
A few designer colors can be added in the future as well.
You can even plan an incomplete restoration when renting.
Whereas a buyer might really appreciate knowing that the roof has a new thirty year warranty, a renter won't care as long as the roof doesn't leak.
Plan from the get-go to replace when you are ready to sell.
First impressions count! When a prospective buyer comes to look at a house and sees zero landscaping and a shabby, unkempt lawn they will have a bad taste in their mouths before they even get inside.
A few shrubs and some tidy mulch will go a long way towards making that first impression a good one.
Plants are cheap and just about anyone can operate a shovel.
This has been a quick glance at some things that can help you turn a profit even in a down economy.
Remember: buy right, don't overdo it, keep your options open (rent or sell), and make a good first impression.
Good luck.
Source...