In quarter two of 2020, professional house flippers in Hawaii earned an average gross profit of $105,000. This equaled an average 24.7% return on their investments. With sizable profits and the option to rent out property to earn passive income, the thought of starting a house flipping business is tempting. Those who’ve retired are especially drawn to the idea, as it is an opportunity to make money and continue learning.
If you are considering starting your own house flipping business during your golden years, Duc Ong of Kaka’ako Condos has expert strategies you can use to succeed.
Set goals for your new venture.
No matter what it is that you’re trying to achieve, setting goals is paramount. Without goals, you may not have a real direction. Rather than buying a house on a whim and seeing if house flipping is right for you, set yourself up for success by setting measurable goals.
The goals you should set will depend largely on what you want to get out of your new endeavor. Is making money your primary focus? Conduct research and set achievable goals for how much income you’d like to earn in the next year, five years, and so on. Is this opportunity more of a learning experience? Decide what you’d like to learn and what goals will make you feel most accomplished. Pandemic concerns? See how you can buy and sell safely. Setting and working toward concrete achievements is the most effective way to succeed.
Know where to look to find the best properties.
As a newbie to house flipping, you cannot do enough research when it comes to which properties you should buy and which you should skip — just one mistake at this stage can eliminate all hope of making a decent profit. In the worst-case scenario, you may even end up owing money.
Reduce your risk of making a less-than-desirable property purchase by utilizing the expert knowledge of others in the industry. When you work with Kaka’ako Condos, you’ll find the best deals on condos in Hawaii. Our honest and experienced team listens to your needs, takes into account your budget, and is transparent about all property details.
Explore your financing options.
Financing is another critical detail to figure out whenstarting your house flipping business. If you have a sizable amount of cash saved up, you may not need to take out any loans. However, you may decide to apply for financing to spread out costs. If you choose to apply for either a mortgage loan or a loan for renovations, compare interest rates among several banks. Resist the urge to apply for more than you need so that you don’t overspend on the project.
Decide who you’ll need to hire.
Flipping houses isn’t a one-person job. Especially if you are new to the industry, you’ll need a team of experts to help with renovations. Begin asking colleagues, friends, family, and neighbors for their contractor recommendations.
Learn what improvements are most profitable and desirable.
Rather than making improvements at random, do research on which are the most profitable and desirable among renters/home buyers. One way to quickly create a stunning look and feel is to spruce up walls throughout the condo. Wallpaper is a particularly attractive option as it is durable, easy-to-install (when using peel-and-stick), and, with the right service, can be customized to fit any decor. This strategy alone can increase your property’s appeal and value.
House flipping isn’t for those who are half committed to the idea. The time and money involved in starting your own property business are extensive but highly rewarding. Letthe Duc at Kaka’ako Condos help. Browse available properties to start.
Guest author: Hazel Bridges