Page 7 - RVO Home Lawn & Garden March 2017

RIVER VALLEY & OZARK EDITION OF THE ARKANSAS DEMOCRATGAZETTE • HOME, LAWN & GARDEN
SUNDAY, MARCH 26, 2017 7VV
“You should always perform your due dili- gence when purchasing any home, including a property you intend to flip. A prime con- sideration when flipping a home is to ensure there are no major repairs needed,” he said.
“Foundation and structural repairs, roof rep- lacement and plumbing problems can turn a property flip into a flipping nightmare. When possible, have someone in the home-building industry or a structural engineer look at a potential flip property.”
➤ Overlook cosmetic problems when visiting properties.
Cosmetic issues include all of the eas- ily replaceable items in a home, such as carpeting, appliances, interior paint colors and cabinetry. Focus on the bones of the house — the architectural integrity and those little touches that you envision hav- ing a “wow” factor.
➤ Seek the help of experts.
Some flippers think they’ll save the most
money by doing all of the work themselves. This isn’t always the case. Professional arc- hitects, designers and contractors may help you save money. Contractors have an inti- mate knowledge of where to buy materials and may be able to negotiate prices based on wholesale or trade costs. In addition, experts can help you avoid common pitfalls because they’ve already done this type of work time and again. It’s smart to rely on expert advice, even if it means investing a little bit more.
Milner said that without the help of exp- erts, even on the accounting side of the project, people will start to see the cons of flipping houses.
“Just because a home is a ‘great’ buy doesn’t mean it will resell quickly. Make sure you know the marketing time in the area where the home is located,” he said.
“Work with a Realtor to help determine the best market areas. Another con to a property flip could come at tax time. Con- sult a CPA to ensure that you understand the tax ramifications of flipping property as they might apply to your personal situation.”
➤ Recognize that not everything must be completely redone.
Realize that, in some instances, a coat of paint and some new accents may be all you need to transform a space. For example, if the kitchen cabinets are in good condition, see if they can be refaced or painted instead of replacing them entirely. Install new door pulls/handles to add visual interest. Look for some ready-made items, such as bookshelves, instead of installing custom carpentry.
It is important to seek help from experts when flipping a home. Realtors can help potential buyers to determine great mar- keting areas, while a CPA can help navigate possible tax ramifications.
➤ Think about what the buyer will want, not what you want.
Renovate with an eye toward prospec- tive buyers’ needs. Keep things neutral and accommodating. Research the latest trends to understand what buyers might be seek- ing in a home. You want potential buyers to envision themselves moving right in. Ren- ovating a fixer-upper takes time, but it can be a worthwhile project and one that can help anyone turn a profit in a booming real estate market.
Milner said that overall, fixing up a home to sell can translate into a quick profit if one knows his or her market.
“Property flipping can be an excellent way to generate income,” he said. “Do your homework. Consult with a bank, Realtor and CPA to set the groundwork for getting into the property-flipping business.”
— Courtesy of Metro Creative with contributions by Spencer Griffin, special sections writer