As we’ve discussed in other articles, the real estate market in Upstate NY is ripe for the picking, especially for house flippers. However, New York is a large state, and the various regions and communities outside of Manhattan vary greatly. At Express Capital Financing, our team has put together a general strategy to help house flippers get the most out of their investments.
Take a Drive
It may sound odd in the age of GPS and Google Maps, but taking a drive to look at homes is extremely helpful. If you’re lining up a specific house in an area, taking a drive can help to give you an idea of what the neighborhood is like. Driving around also helps to size up any added features which could be leveraged when listing a house. Is it a quiet area? Are there good schools nearby? How far away is the nearest grocery store? What about access to healthcare facilities? How busy are the roads during morning commutes and the evening rush hour? Potential buyers are going to have a lot of questions, and being able to provide answers will get you closer to a sale.
Compare Listings in Upstate NY
Successful house flippers in Upstate NY have to do a little research on the local property markets. Obviously a single family home on Long Island is going to have a different listing price compared to Utica or Oswego. Flipping homes in Upstate NY involves a bit of comparison shopping. If you’ve lined up a property, take a look at what similar homes are going for in that area.
Always Get an Inspection
We cannot stress this enough. Homes in Upstate NY are of all sizes and ages. Getting a third-party inspection will give you an idea of how much renovation work needs to be done, as well as any potential hazards. The last thing any house flipper wants is to budget for a simple renovation, only to to find out the whole house has the old knob and tube electrical work that needs to be overhauled, or to find one of the few homes in the state that still needs asbestos removal.
Speaking of Budgets
When budgeting for a fix and flip project, there are a few things to consider. First, do not go above your purchasing budget. Bidding wars sometimes ensue when looking at properties, but the only winner in those situations is the seller, and counter offers will only eat into your profit margin. Second, leave yourself some cushion for the unexpected. If something needs to be replaced, you want to have capital available to cover the expense. Also, don’t go for the cheapest materials and fixtures. You don’t have to go top shelf, but buyers are willing to pay extra for a nice backsplash, durable engineered hardwood floors, and decent counter tops. Put aside some extra capital for staging, as well. Renting some furniture to give buyers an idea of what the home looks like when its furnished helps to close transactions a lot faster.
Financing Your Investment
Express Capital Financing provides funding for house flippers throughout the state of New York. Talk to our team, and we will provide a solution tailored to your needs, to ensure success on your next house flipping project from start to finish.