A Beginners Guide to Flipping Houses in Northwest Arkansas
The housing market in Northwest Arkansas is at its peak, with a 98% occupancy rate for apartments. There has never been a better time if you’ve been thinking of buying a property in one of the four main areas of the region.
Now is also the perfect time to buy if you want to flip a property for larger profit. Use our guide to find out more about what flipping a property in Northwest Arkansas involves.
What is House Flipping?
House flipping involves purchasing a house, – one that often needs work doing to it – fixing it up to add value through decorating and expansion, then selling it on at an increased price to make a profit. The turnaround on flipping houses is assumed to be quick, however renovating and selling a house can be a lengthy process. Be prepared to dedicate as much time as possible to the project and speak with local real estate agents to estimate how long it may take to sell the property afterward.
Alongside the time it would take to decorate and sell the property, you need to consider the costs, the kind of house you are going to purchase, and the location. Make sure to do your research, seek relevant advice and start to form a plan before you begin the house flipping process.
There are several advantages to real estate investments, but you need to ensure that you have a good understanding of what is involved in the process before you begin. Real estate investing isn’t exactly cheap, so you want to take your time to avoid making costly mistakes flipping houses that could end up costing you more money than it’s worth.
It’s important to have resources set aside before you initiate the process, enough to cover the initial costs of purchasing the property and any structural work it may require. For your first project, it is advisable to take on a property that doesn’t require many significant changes. For example, structural or electrical issues will be time-consuming and costly, which can be difficult to deal with if you lack experience.
Visit house auctions to find a property for the best price, many of which will have previously been in foreclosure. Do not consider purchasing multiple properties to flip at the same time unless you have substantial funds available and significant experience in the industry. Flipping a property will often be more expensive than you envisioned, particularly on the first few projects you undertake.
Devise a budget and attempt to stick to it throughout the renovation process, as anything you spend over this, will affect the profit you can make. Set aside a small amount of money as a reserve that you can access only if know you are going to go over your initial budget by the end of your project. These funds should cover unexpected costs that cannot be avoided.
Plan how you will pay for the renovation work and decoration, for example, labor, carpets, paint, and replacement fixtures and fittings needed to add value to the house. While this may not be exact, it can help you to plan the funds you will need and how you will access them before you start work, to ensure you do not run out of money halfway through flipping the property. The process of flipping a house is a business and needs to be carried out professionally, focusing on how you will make a profit once you have sold the house.
Research and visit locations you are interested in, making a note of the nearby facilities, transport links, school systems and the local area, as these all affect the desirability and price of a property. Often there is money to be made from up and coming neighborhoods in the housing industry, meaning you can buy them cheaply and sell at a higher price; however, remember businesses, housing, and the surrounding area can change quickly in an area that is not established.
Think about the kind of house you will buy and what is selling well in your chosen area. Decide how many bedrooms you can afford, research market prices for your location and see what kind of properties are on offer in the area.
Having a particular type of property in mind before you start making offers will help you narrow down the area of the market you want to focus on and help you find the best deal. Consider the value of the surrounding properties before making your decision. Hire a professional to carry out an extensive survey before purchasing any property.
To learn more about real estate investing and flipping houses call Synergy Realty Group, LLC. (479) 464-9999