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With the potential benefit of buying at a discount, adding value to a property and its surrounding community, then turning a profit for your hard work, what’s not to love? Fix-and-flip investments can have plenty of upsides, but to be successful, you’ll need to start with finding the right property.
Choose the Right Renovations
A good first step when searching for a fix-and-flip property is deciding what kind of repairs and renovations you are willing to take on. To do this, you’ll need to nail down a budget that covers all potential renovations and then a little extra in case you run into unexpected repairs down the line. There are quite a few relatively inexpensive renovations you can perform on your own or with the help of a professional. Some options are:
- A fresh coat of paint
- New light fixtures
- Upgraded kitchen appliances
- Seasonal landscaping
- Smart home tech
- A security system
Each of these renovations could potentially add value to your property, improve its curb appeal and increase the final sale price. As you search for your investment, keep your rehab plans and budget in mind.
Choose the Right Market
Market research is extremely important when searching for a fix-and-flip property. Some markets are better suited for fix-and-flip investments than others when considering the number of properties available, profit generated from sales and the number of days the property has been on the market.
Hubzu, an online home auction marketing platform, recently released data revealing the top 25 U.S. metropolitan statistical areas for real estate owned fix-and-flip properties. In just the top 10 areas alone, you’ll find a variety of unique markets — and their average profit after estimated repairs — to consider when looking for a property:
- Virginia Beach-Norfolk-Newport News, VA-NC: 15.54% (+$40,936)
- Richmond, VA: 14.22% (+$39,095)
- Cleveland-Elyria, OH: 14.87% (+$25,634)
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: 13.82% (+$36,686)
- Baltimore-Columbia-Towson, MD: 13.34% (+$42,029)
- Cincinnati, OH-KY-IN: 14.06% (+$28,688)
- Rochester, NY: 15.98% (+$27,328)
- Tucson, AZ: 13.99% (+$35,437)
- Pittsburgh, PA: 13.75% (+$27,282)
- Birmingham-Hoover, AL: 12.33% (+$27,109)
Choose the Right Resources
After determining your renovation goals and identifying an ideal market, you can begin leveraging different resources to help obtain the right fix-and-flip property. Hubzu, for example, allows users to search for properties across the country. The platform provides investors with property descriptions, location information and photographs. You can find auctions for your selected properties, and in many cases, place your bid online.
Platforms like Hubzu can be especially helpful for seasoned investors who are comfortable managing the buying and searching process on their own. If you know your area well, you can use the tools provided by Hubzu to find and acquire the right property in the market of your choice.
You can also work with a real estate agent who may have insight into the area’s key amenities and attractions, school rankings, in-demand home features and other details that can help you market your fix-and-flip property. They can also help you set a realistic price point for your property, possibly increasing your chances of making a quick sale.
Another benefit of working with an agent is that they likely have access to a network of other real estate professionals. When it’s time to start renovations, your agent may be able to put you in touch with reliable contractors who can assist you with repairs and upgrades.
With the right strategy, your next fix-and-flip property can be a rewarding experience.
Visit Hubzu.com/ThinkRealty to find and bid on foreclosures in your area.