Flip a House Without Breaking the Bank

Flipping a house can be a great investment, if you know how to do it on a budget. The money you invest in repairs and upgrades comes out of your profit so you want to make sure that you consider the necessity of what you want to do before you spend the money.

Here are a few ideas on saving money while still making a house look great:

Have it inspected

All the upgrades and pretty paint in the world won't sell a home you've flipped if buyers learn there's a huge problem with the foundation. Before you do anything else, have the home inspected. Problems found by the inspector need to be at the top of your list of things to resolve.

Hire a contractor

A contractor can go over the problems found during the inspection, determine how much it will cost and how much time it will take to repair those problems, and get you on their schedule to get the work done. Getting on their schedule is important if you want to flip the house quickly because contractors sometimes have a long waiting list.

Do the work yourself

You can't do everything yourself. But you can honestly assess your skills and the work that needs to be done, or that you want to do, and do some of it yourself. Cosmetic work in particular, such as painting or replacing light fixtures, is easily done yourself. The more you can do yourself, the more money you'll save. It's important to know your skills, however, because bad work won't sell a house.

Look at the inexpensive, special touches

When people first think of flipping a home, they think of a huge project with replacing carpet and tile, tearing down walls, and essentially gutting the house and starting fresh. But flipping a home, particularly one that's in fairly good shape, can be much simpler, and cheaper, than that.

Look at simple things: nice faucets in the kitchen and bathrooms, fresh paint, new light fixtures, or new ceiling fans. Crown molding, wainscoting, or a new doorbell are all inexpensive ways to make a home look elegant and fresh without spending a lot of money. Another easy fix that can be done is simple replacement cabinet doors.

Bring the house up to standard, but don't overdo it

It's tempting to go all out. You see the possibilities in the home, and spending a little extra cash to make the place all it can be just makes sense, or so you think. But if you make the house too nice, you also price yourself out of the market. It may be the nicest house in the neighborhood, but if you're selling it for two or three times what other homes in the neighborhood are worth, you're not going to sell it at all.

Keep the house on par with the rest of the neighborhood. Find out what other houses are worth, and determine what repairs or upgrades you can make that will make it compete with nearby homes in appearance and sale price.

Look for quality, but cheap options

One mistake many flippers make is they spend more than they need to in order to buy things they would like in their own home. Remember that you're flipping this house to sell it - you don't have to like the finishes.

Find tile, carpet, or cabinets that are inexpensive but quality, and don't worry about whether you like the color, design, or finish. Look for 'oops' paint - paint that was supposed to be a particular color but didn't quite make it. If you need to put in appliances, and you'd prefer stainless steel, get the cheaper white or black. Remember that the buyers can always replace anything they don't like themselves.

Flipping a home can be fun, and a great way to make some cash, if you know what you're doing.