House Flipping Tips for Summer 2016 Real Estate

The summer real estate market is heating up around the country. As with the rest of 2016, this summer is likely to be a seller’s season. Here are our top house flipping tips for rehab investors over the next three months.

Tips for House Flippers Ready to Sell

Congratulations on being ready to bring your flip to market this summer. As you likely know, summer is the season when the housing market peaks. People who were waiting for their kids’ summer vacations are on the prowl for a new place to live. Here are a few ways to achieve maximum ROI on your flip.

1.  Pay attention to the market

You may have an ideal asking price in mind, but if it is substantially higher than everything else around, you might find yourself sitting on your property for weeks. Remember that in hot markets like California, it’s likely that your house will sell for above asking price this season if your initial price is reasonable enough to draw buyers in. Better to create a bidding war between highly motivated buyers than to sit waiting for someone to come around to your high asking price.

2.  Don’t overlook staging

Properly staging a house can have a significant impact upon your bottom line. You may not want to put in the extra money to furnish a house for a few days, but the returns will almost certainly be worth it. Remember to choose furnishings that are classic and clean. Don’t clutter up rooms or make spaces looks smaller with oversized or clunky furniture. Remember to also pull all the shades so that the house is filled with inviting natural light. A few fresh cookies on the table never hurts, either.

3.  List your house sooner than later

The homebuying season peaks in June. If you’re trying to figure out the exact perfect time to list your house, you might miss your window. Try to do everything in your power to get your flip on the market ASAP. Of course, you shouldn’t cut any serious corners, but if there are little details that are holding you up, it might be worth setting those details aside.

Tips for House Flippers Looking to Buy

Summer isn’t exactly the ideal season to be looking for a fix and flip property. If you’re itching to make an investment, here are a few tips you should follow to help ensure success:

1.  Look at under-tapped markets

Many of the most affordable housing options can be found in the Midwest and South. You can also still find up-and-coming neighborhoods in metropolitan areas of California and other western states. Getting the most bang for your buck will be difficult during the summer, but it’s possible if you keep your ear to the ground and think outside the box. Try to find neighborhoods that aren’t being explored by other house flippers -- just be sure to do your research to make sure that you’re not fishing in an empty pond.

2.  Shop around for the best house flipping loans

It almost never makes sense to go with the very first lender that you talk to. Instead, you should consider multiple options so that you can find the best terms for your needs. Remember that the rate alone is not enough to determine whether a loan is any good. Watch out for hidden fees, high loan points, and prepayment penalties. You should also talk to people who worked with the lender you’re considering to make sure that they are reputable and reliable. Finding the right loan terms from the right lender could substantially affect your final ROI.

3.  Consider buy-and-hold investing

The short turnaround time of house flipping makes it harder to earn great profits off of homes purchased during the summer. But if your plan is to hold a house or an apartment building for a few years, rent it out, and then sell it a few summers down the line, the buying season should have less of an impact upon your bottom line. Rent prices are at an all-time high and home affordability is low, so buy-and-hold investing just might make more sense for you over the next few years.