When buying a house in Irvine, flipping can mean massive profits or big losses. While there are never guarantees in flipping, there are steps you can take to increase your chances of making a profit. Here are 5 tips that can help you make a profit on your next flip, despite the highly competitive marketplace in Orange County.
1. Know the Market
No house exists in a vacuum. Without a good understanding of the local market, making a profit will be even more challenging. You should know whether the home is in an established community where prices are on the rise or if it’s in a transitional area with potential. Assessing a prospect involves considering who is likely to buy the home, such as a retiree or a family due to a good school district. By understanding the local market, you will have a better understanding of your profit margin. Always investigate recent sales and the average days on the market for homes in the community to get a rough idea of how long you may hold the property before it sells.
2. Use Several Resources to Find Good Prospects
Homes with a lot of potential won’t just fall into your lap. You shouldn’t expect to find the best deals on the MLS, as there will be stiff competition, including with homebuyers in a buyer’s market. You may want to check into resources that focus on foreclosure listings, or you can get even more creative. Check local sheriff’s auctions to potentially get a bargain on a home. Get lists of homes from the city that have received code violations. These homeowners are likely motivated to sell if they are unable to pay for necessary improvements and have caught the city’s attention.
3. Don’t Make Too Many Improvements
Every neighborhood has a general price range, and it’s important to stay within it. Making too many improvements to a home may be even worse than overpricing it. If you are renovating a home in a neighborhood of older homes with laminate countertops and floors and you add granite counters and wood flooring, you might not get your money back.
4. Add Low-Cost Features That Get Attention
While you should minimize the amount of money you put into the home to maximize your profit, you also need to catch the attention of potential buyers. The two biggest goals of your remodel are increasing the value of the home and getting a quick offer. Special low-cost touches can help you achieve both goals. Consider areas where you can invest a small amount of money to make a buyer fall in love. Some options include installing a commercial kitchen faucet as a statement, adding crown molding, or putting a bit more money into lighting fixtures.
5. Make Improvements with a Buyer in Mind
You should have a good idea of the types of buyers who are likely to be interested in the property. For example, the community may appeal to younger families if it’s in a good school district with at least 3 bedrooms. In this case, you might want to spend money creating an open floor plan with the living room and kitchen. If the neighborhood is popular with retirees, you ideally want a ranch style or single-level home. Focus on maintenance-free outdoor areas and accessibility.
Whether you’re looking to flip or not, Irvine has many Townhomes, condos, and homes for sale. Irvine, CA, is an amazing place to live. Find out about some of the great properties in the area by getting in touch with OC Residential today. Call 714-454-6304.