Feature – House Flipping: Tips from the Experts

House flipping is a real estate investment strategy that has caught the attention of entrepreneurs and real estate enthusiasts.

Ambience Design Group was asked for their expert advice on how to update a home for flipping. Below are some of the highlights including many tips from other related experts. The full article can be found here.

To succeed in house flipping, investors must find properties with hidden potential that they can transform through smart and strategic renovations. This process requires a sharp eye for identifying opportunities, understanding the local real estate market, and a solid financial strategy.

Risks in house flipping

Understanding and managing the risks can help you achieve success and profitability in house flipping.

Detailed pre-purchase analysis: Do a property evaluation before purchase. This analysis inspects the structure and critical systems like plumbing and electricity. Identifying potential problems can prevent costly surprises during the renovation.
Realistic planning and budgeting: Establish a realistic and comprehensive budget to help you control the whole project better.
Knowledge of the local market: This involves understanding current market trends, buyer preferences, and selling prices of similar properties. A deep understanding of the local market will help you make informed decisions about which home remodeling options to undertake and how to set the selling price.
Contractor management: Select carefully reliable and qualified contractors for peace of mind during house flipping projects. Quality professionals will ensure the durability of the renovations while avoiding delays and additional costs.
Careful selection of renovations: Choose improvements that maximize the property’s value without exceeding the budget. Renovations should be both aesthetically appealing and functional. It’s a good idea to focus on areas with the most impact on resale value, such as the kitchen and bathrooms.
Preparation for risks and setbacks: House flipping projects can face setbacks even with careful planning. It is important to be prepared for these risks, whether through adequate financial reserves or flexibility in the project strategy.
Clearly defined exit strategy: This strategy involves knowing when and how to sell the property, including considering different market scenarios and being willing to adjust the selling price if necessary to close a deal.

What the experts say

How can I personalize each house-flipping project to cater to potential buyers’ preferences while ensuring that key aspects like safety and durability are addressed?

“When working on a house-flipping project, it’s important to renovate the house to give it a modern look. It’s best to use timeless materials, such as hardwood for flooring and solid surfacing materials for countertops, in neutral colors, such as browns, greys, whites, and beiges in order to cater to a wide range of potential buyers’ preferences. These aesthetic modifications will modernize the home and give it universal appeal through the use of durable, up-to-date materials in a subtle palette that will endure for years to come.

Outside of making aesthetic changes in a home, structural modifications must consider the health and safety of its future occupants. To ensure these key aspects are addressed when renovating a kitchen or bathroom, it is important to get licensed professionals like plumbers, electricians, and mechanical and structural engineers involved to ensure modifications made to the property conform to the local building code.”

Sara and Josie from Ambience Design Group

How can I effectively plan and budget for the typical expenses associated with fixing and flipping a house?

“Effectively planning and budgeting for a house flipping project requires meticulous attention to detail and a realistic assessment of potential costs. Begin by thoroughly evaluating the property and identifying necessary repairs and upgrades. Create a comprehensive list of expenses, including materials, labor, permits, and any unexpected contingencies.

Research local market trends to understand the potential resale value of the renovated property. Develop a detailed timeline for the project, taking into account seasonal factors and potential delays. Prioritize tasks based on their impact on the property’s value and marketability.”

Sohin Shah from InstaLend

What types of windows and doors should I choose to maximize value and attractiveness during a profitable renovation project?

“When embarking on a renovation project, selecting windows and doors plays a pivotal role in enhancing both property value and overall aesthetics. Opt for energy-efficient windows with high-performance features, such as double or triple-pane glass and low-emissivity coatings. These not only reduce energy costs but also elevate the property’s appeal by offering modern functionality.

As for doors, consider options that complement the architectural style of your home while offering durability and visual interest. Solid wood or fiberglass front and patio doors with simple glass inserts can significantly elevate curb appeal. Additionally, prioritize features like secure locks and weather-resistant materials to ensure both safety and long-term value. A harmonious balance including functionality, style, and durability will maximize the overall design and value of your renovation, offering a space that’s not only beautiful but also cost-conscious and energy efficient for years to come.”

Kerrie Kelly from Kerrie Kelly

What are the best ways to quickly renovate properties for resale, focusing on important updates and energy-saving improvements, to appeal to a wide range of buyers?

“When we renovate homes, we aim to provide the most strategic updates to maximize their resale potential quickly. Each house is different and will require certain elements to be updated to help us achieve this goal. Some homes need quite a bit of reconfiguration to appeal to a broader range of buyers. That could mean knocking down walls, relocating appliances, or even adding square footage to the home to create a more functional layout. We have found that strategically updating the home cosmetically without pulling permits is the best way to renovate the house more quickly and produce a more significant profit. Here is a short list of those updates and improvements that have helped us achieve that.

Enhance the curb appeal: If the siding is in good shape, we typically will paint it in a neutral color tone in the beige, gray, and “greige” family. Also, painting the front door with a more in-trend color and adding stylish hardware is a great way to make a big cosmetic impact. Fresh landscaping is a must, and it does not have to cost a fortune. Simply taking down old shrubs and overgrowth and creating mulch beds with new plants will make a notable difference and attract more potential buyers.
Upgrading to higher efficiency windows: If the windows are original, we will upgrade them to higher efficiency windows to attract more buyers. Not only will newer windows provide energy efficiency, but they will also help enhance the home’s aesthetic. Old windows might detract buyer’s attention away from all of the other renovations that have been done.
Updating the Kitchen: Updating a kitchen does not have to be a huge endeavor. Simply painting the cabinets to a lighter color, updating the hardware, and adding a backsplash and quartz countertop can bring a significant return while keeping the budget down.
Modernizing Bathrooms: Similar to kitchen updates, one can do strategic bathroom updates without breaking the bank or causing project delays. For example, many older homes have the standard 4×4 tile in the shower surround and sometimes on the walls. If these tiles are in good shape, we tend to reglaze and/or regrout them to freshen them up. Freshened-up white 4×4 tiles and a nice warm paint color like “Sea Salt” are beautifully paired together. Additionally, simply painting a vanity and updating its finishes can create that wow factor without much money. This can make all the difference to the aesthetic of an entire bathroom and help attract many more buyers.”

Jonathan Faccone from Halo Homebuyers

How can I enhance the online presence and market appeal of my flipped properties?

“To successfully renovate and sell a house, it’s crucial to follow a structured interior design process. With every project, we conduct a thorough walkthrough of the property to measure and capture photos of the space. From there we identify problematic areas that need attention and determine the changes that will make the most significant impact on the home.

After this initial walkthrough, it’s essential to create plans, develop design concepts, and carefully select finishes to enhance the home’s appeal. Once those are presented and approved by the client, pricing and execution follow suit, leading to the remodeling phase, where the envisioned changes come to life. After all renovations are complete, staging then takes center stage, allowing the home’s full potential to shine and capture the heart of prospective buyers.

Equally important is investing in high-quality photography to showcase the renovated space effectively, drawing in potential buyers and highlighting the property’s best features.”

Interior Designer Andrea Schumacher from Andrea Schumacher Interiors

How can virtual furniture enhance my ability to visualize the final outcome of my home renovation project and market it effectively?

“Virtual furniture has become a game-changer in online marketing. It allows you to create captivating, realistic visuals that can showcase an otherwise lackluster home, internally and externally. This enhances the property’s attractiveness to potential clients in many industries, including renovation companies, as they can better envision themselves in the revamped setting.

This cutting-edge technology enables you to experiment with diverse layouts and styles, offering a preview of the final outcome without the physical commitment. It becomes a valuable tool in making informed design decisions when changing layouts or schemes within the home.

Integrating virtual furniture into your home renovation process can transform the way you visualize and market your project. Moreover, digital styling enhances marketing materials, too. High-quality, realistic renders can be incorporated into promotional materials, websites, and social media platforms, offering a visually appealing representation of the renovated spaces.

In simple terms, virtual furniture makes it easier for people to decide on designs, makes ads more attractive, and gives a professional image to the company.”

Wayne Robertson from Digital 1

What are the key steps and strategies I should prioritize to boost the curb appeal in my house flipping project significantly?

“In the exhilarating world of house flipping, boosting curb appeal is the opening act that sets the stage for the real estate extravaganza to come. Imagine it as the flashy attire your house wears to impress potential buyers. Here’s a savvy playbook for enhancing that oh-so-important first impression:

Landscape Charisma: Transform your yard into a green masterpiece, but remember, you’re not auditioning for a gardening show. Keep it elegant yet approachable.
Front Door Drama: Paint the front door in a bold, inviting hue. It’s the equivalent of your house saying, “Hello, I’m fabulous!” A chic door knocker doesn’t hurt either.
Window Envy: Replace old windows with energy-efficient ones that let the light in without compromising security. No one wants drafts or uninvited guests crashing the party.
Illumination Elegance: Install tasteful outdoor lighting for a touch of nighttime charm. Your house should be ready to shine 24/7.
Pathway Perfection: Repair those cracked pathways; you want guests to approach with grace, not stumble like they’re in a slapstick comedy.
Local Flair: Keep your renovations in harmony with the neighborhood. Turning a classic colonial into a futuristic spaceship might raise a few eyebrows.
Spic and Span Symphony: A clean, clutter-free exterior is non-negotiable. Think of it as your house’s red carpet moment – it needs to look impeccable.

With these strategies, your curb appeal will steal the spotlight, making your flip a real estate sensation. Now, go dazzle the market, and may your profits be as high as your house’s appeal!”

Mark Sanchez from Gator Rated

Which specific real estate renovations have the most significant impact on increasing the value of a house when it comes to house flipping?

“The impact of real estate renovations on a house flipping’s value primarily depends on the house’s least desirable areas. A better approach to solely focusing on a single room, such as the kitchen, it’s often more profitable to allocate your budget to enhance multiple aspects of the house. This holistic approach involves refinishing and painting cabinets to save costs, upgrading lighting fixtures throughout, redoing flooring, repainting walls, working on the exterior, and updating various elements like switches, outlets, can lighting, doors, and hinges.

The goal is to make the whole house feel newer and refreshed. In this way, the rest of the house will not reduce the value of the new kitchen or bathroom you installed. If you can’t do it all, then it is better to refresh the kitchen and still modernize the rest of the house.

This comprehensive approach creates a cohesive and refreshed overall look, leaving the entire house feeling new or newer. This strategy prevents a newly renovated space from feeling out of place in an outdated home. For example, investing solely in a new kitchen may not result in a profitable return on investment if the rest of the house remains outdated. The key is to ensure a consistent and appealing aesthetic throughout the entire property, ultimately increasing its overall value in the eyes of potential buyers.”

Matthew Miner from Get Happy at Home

What are some affordable DIY renovation ideas that I can consider for improving older homes?

“Here are my 4 suggestions for inexpensive DIY ways to flip older houses:

Refinish Hardwood Floors: A significant number of old homes have stunning hardwood floors hiding under decades of neglect. Don’t let tired wood floors tempt you to replace them. Sanding and refinishing floors for a fraction of the cost of new flooring can quickly revive a hardwood floor’s natural beauty.
Spruce Up Color: One of the most overlooked yet inexpensive ways to dramatically transform a home is as simple as picking up a paintbrush. A fresh coat of paint gives an old house a new lease on life. While a historically accurate color palette should be considered, ultimately, you should choose a color scheme that both compliments the home and fosters a quick sale. And don’t forget cabinets, doors, and trim!
Improve Energy-Efficiency: Making an older home more energy-efficient is doable without breaking the bank. Sealing gaps in doors and windows, adding reflective foil behind old cast iron radiators, insulating attics and crawl spaces, and adding storm windows and doors can make a notable impact on utility bills.
Freshen Up Hardware: Sprucing up the hardware on bathroom and kitchen cabinets as well as doors is a DIY project that results in a big bang for your buck. For a small investment, new hardware throughout a home creates a fresh and cohesive appearance. Note that if you suspect the hardware is original to the house, don’t throw it away. Instead, drop it off at an architectural salvage store so it can be restored and reused, or store it in a safe place for the next homeowner.”

Jennifer Osterhout from Everyday Old House

How can I utilize property styling to demonstrate the superior quality and reliability of the renovations in my house flips?

“Property styling, also known as home staging, is a strategic approach to showcasing the potential of a property to prospective buyers. Thoughtful styling will both complement and elevate your renovation by highlighting key features and creating an emotional connection.

You’ve most likely created focal points within your home during the course of your renovation or house flip, and the right furniture and decor placement will draw the eye to these features. For example, floor-to-ceiling windows will be accentuated by furniture placed on their periphery rather than in front of them, and art on adjoining walls should be large scale to compliment their proportions.

By choosing high-quality furniture, art, and accessories, you’ll be demonstrating to buyers your commitment to superior workmanship and style. You can also use your styling to create interest. If your interior finishes are mainly neutral, art and soft furnishings are a great way to add texture and color without dominating your space.

Property styling also creates a connection. It not only demonstrates the functionality of your space, but it allows potential buyers to imagine themselves living there. A property stylist will draw on design elements to create a warm and inviting space that resonates with your buyer demographic.

Walking into a professionally styled home is a very different experience from entering a vast, empty space. Strategic styling demonstrates functionality, highlights key features, and evokes an emotional response, ultimately lifting the value of your home and reinforcing the caliber and care you’ve put into your renovation.”

Laura Ugarte from Spatial Property Styling

House flipping can be a lucrative opportunity in the real estate market, but it requires a disciplined approach and expert knowledge to minimize risks and maximize profits. Success in house flipping relies mainly on balancing the cost and value of renovations, ensuring that improvements are aesthetically pleasing and efficiently address the property’s functional and safety needs. By following the advice of experts and staying informed about market trends, you can make more informed decisions and increase your chances of success in this promising investment strategy.