Many people know these days that real estate is a good industry to get into if you’re looking for monetary returns. Houses sell for lots of money, or at least they can as long as they’re in good condition.
But sometimes, people buy houses in poor condition with the intention of fixing them up and selling them for a profit. These are called fixer-uppers, of course, and people engage in this practice for all kinds of reasons.
Maybe you’re buying a fixer-upper to move into yourself. Maybe you just want to sell it. Or maybe you want to turn it into a rental and make continual income from it that way.
We’re going to give you some helpful hints about turning that ratty old fixer-upper into a rental everyone wants to live in. So when those house hunters start looking for houses for rent in San Antonio, they’re going to find and love yours.
Know Your Limitations
Whether you’ve done this before or you’re just getting into it, you need to know your limitations as an investor and house flipper. You may have a ton of experience remodeling homes, but if there’s something you just can’t do, make sure you go the right way and call in a professional.
For instance, you can’t upgrade the electric panel yourself if you aren’t a skilled electrician, can you? Or perhaps you need to change out the plumbing but have no idea what you’re doing. Don’t be afraid to go the extra mile for the satisfaction that your fixer-upper will be perfect.
Think of the Future
If you are turning this house into a rental, you’re going to want to make it worth your while. If you want to be able to charge a decent rent, something your tenants feel is justified, then go all out on the remodeling and amenities.
Get that sleek, modern kitchen with all new appliances. Get new hardwood floors and crown moldings and a new roof – if you can afford it. Don’t stretch yourself too thin, but remember that what you put in now will come back to you in years to come.
Prepare for Surprises
Before you even begin your flip, you should have a cache of funds set aside for surprises you find along the way. No matter how much you know and how many home inspections you’ve had done, there is always the possibility of surprises that no one saw coming.
You’ll usually need cash to make those issues go away. Whether it’s a structure problem or a leaky basement, have the money ready to deal with it in due time before it becomes something bigger. That way, one issue won’t completely scuttle your plans to make some money from this house.
Keep these things in mind, and in no time, you will have turned that fixer-upper into a beautiful new rental!