Woke up this morning to a great new listing in Glendora for a property that was being sold by the original owner and priced 30% under neighborhood value. It would need a lot of work, but for the right person who understands a good investment and isn’t afraid to get dirty – it was a SLAM DUNK investment.
We immediately called the agent to schedule an appointment and THEY HAD ALREADY ACCEPTED AN OFFER. In less that 12 hours the property was gone! It absolutely reaffirmed that someone else just as savvy knew what a good deal it was and struck overnight.
If you or anyone you know is looking for the perfect investment property in the area, let us do the work. It’s imperative to have your finances ready and all necessary documents so YOU can be the first one to strike overnight and secure a property that will hand you a chunk of equity when flipped correctly.
What’s correctly? How do you know where to invest your money and maximize your profits?
Kitchen and Bathrooms. Redo them from top to bottom. If you are not sure what materials to use, look at homes that sold for top dollar per square foot in the area and copy them.
Flooring. In most flips, use laminate hardwood flooring in the primary living areas and carpet in the bedrooms. Laminate hardwood flooring is difficult to tell apart from real hard wood. It is not only much more durable, and scratch resistant; it is also less expensive.
Paint. Paint every room in the home. If the walls have a lot of minor flaws in them, use flat paint. Otherwise, use an eggshell finish. And always use earth-tones.
Landscaping. Donald Trump himself stated that you get a $10,000 return for every $1,000 you invest in landscaping. It is amazing what rocks, trees, and shrubs can do to increase the perceived value of a property. A good rule of thumb is to budget 1% to 2% of the final expected sale price of your home for landscaping. Plant a couple flats of fresh flowers the day before putting the house on the market. This simple, inexpensive final step will drastically increase your overall profit.
Roof. If the home needs a new roof, replace it. But factor this into your costs before you purchase the home.
HVAC. Make sure the home has a working heating and cooling system. Air conditioning is a must in areas with warm climates.
Garage. Other than paint, do not spend much money here.
Back Patio. This is an often overlooked but important area. A simple $1,500 deck with two chairs, a small table in between them, and a couple wine glasses sitting on the table paints an awesome picture in the head of the potential buyer.
Overall, here are three strategies to be successful:
- Partner with an experienced Agent who can direct you to a property that will hold instant equity.
- Be realistic about your expected costs;
- Seek knowledge from others with house flipping experience.
Let us help you with any questions you have. Whether it’s a flip or a primary residence – that’s what we are here for! Call Jeff Brang, Broker Associate 626.664.9998