There are plenty of entertaining shows out there about how you can flip your house, and they feature all these people that have done it themselves for a great profit and it seems realistic to think that any of us with the right amount of time and money could do the same. In Boston you might find a condo that needs a little bit of love, or maybe a facelift and so why not try to flip it!?
The truth is that flipping a home is a lot of work, the people on TV have perfected it after many years and many homes. There's some intensive work and more money than you might expect that go into these renovations. But, if you're still looking for a nice challenge then here are some things to consider when flipping a house/condo:
-Consider regulations and permits. You will, of course, need the basic building permits, but you also need to consider what changes you can make to a building. Coding laws in Boston may make it difficult to build additions or drastically change the facade of a building. There are also laws in place that prevent you from selling your property immediately after purchasing. The standard law is that you must own the home for three months, which means in that time you will need to account for money spent on taxes.
-With all sorts of regulations and financial commitments you must have a firm plan in place before purchasing. Know exactly what you want to do with the home, what parts are going to be torn down, what just needs a new coat of paint. This way you'll be aware of the financial commitments and the extent to which you'll need to invest your time.
-Remember than in order to see any real profit from your project you need to buy a place for 30% less than you intend to sell it for. This is a rule of thumb than can keep you out of financial troubles and account for all the renovations neccessary.
-Always consider the fact that plans change. While we did suggest that you plan everything out before hand, also remember that it might not be the beautiful hardwood floors that you expected under that carpet, or maybe the cupboards need to be custom fit because of some strange corner in the kitchen. Things rarely go exactly as planned, and keep that in mind as you go.
- The market for these cheaper homes and "fixer-uppers" is fairly competitive, so move quickly and always be on the look out for a deal. You never know know when someone else will beat you to signing a purchase and sale!