Real Estate Elevated: 4 Ways to Save Money on Your Next Fix and Flip
Anyone who’s flipped a few houses can tell you that real estate investing is a nice source of income, when they don’t go over budget anyways. If done wrong, house flipping can prove to be a rather costly form of investing. Many investors, instead of landing themselves a nice profit after fixing up a house, often get stuck in the trap of barely breaking-even. No one wants to get caught in a sticky situation like this, especially after putting in many hours of work and thousands of dollars into fixing up a house. So how do you stay on budget and actually turn a profit?
Over the years, Tarek and I have learned a few tricks that have helped us save a huge chunk of money on our flips. These money-saving tricks have not only kept us on budget, but we’ve been able to make a nice profit off of our flips. The thing to keep in mind is that you don’t want to cut corners when it comes to workmanship, which will just make your work look “cheap” and your buyers will be able to see right through that. Rather, you just want to find less expensive options for materials that you know you’ll need.
If you are strapped for time or simply don’t feel like looking around, online shopping is one of the first things you should do. Websites likes Amazon, Build.com, eBay and Craigslist are all great options for finding inexpensive materials for your remodels. Whether you are looking for door knobs, cabinet handles or light fixtures, I would definitely recommend looking online before you go anywhere else.
Check Out Secondhand Building Supply Stores
Secondhand stores like the Habitat for Humanity ReStore can be a hit-or-miss, but if you’re lucky you can find some great deals on things like appliances or bathtubs. ReStore locations can be found all across the United States, as well as plenty of other salvaged building supply stores. Secondhand stores are certainly worth checking out, especially if you aren’t looking for anything specific.
Purchasing all of the most expensive materials may seem like a good idea, because who doesn’t like granite countertops? But, spending a lot of money on materials won’t necessarily mean you’ll recoup the costs after selling. Save yourself a headache, by considering cheaper alternatives for the more expensive materials. While a fiberglass door will certainly add curb appeal to your flip, a steel door is equally as attractive and will cost quite a bit less. Instead of replacing the beautiful, albeit outdated wood cabinets in the kitchen, consider giving them a fresh coat of paint and replacing the hardware instead. As long as you aren’t skimping on workmanship, there is no reason you should be spending a fortune on all of the top-of-the-line materials.
Stock-Up on Materials You Find
It may seem like a hassle to purchase a toilet if it isn’t on your shopping list, but if it’s a good deal then you might not want to pass it up. When you come across random deals, it’s a good idea to stock-up on the things you know you’ll use later on. After all, who knows when you’ll come across a $50 toilet again.
The key to saving money when you are flipping houses is not fearing alternative routes. Don’t be afraid to shop online or buy used building materials. While you don’t want to become a penny-pincher when it comes to essential repairs, you can definitely save some money on necessary materials.