When you take a long look at the McLean VA real estate listings, you’ll discover three types of properties for sale: “move-in ready,” “not quite there yet,” and “ready for a total overhaul.”
If you’re considering making your first flip, it’s those last two categories that you should focus your efforts on. Contrary to what you might have seen on TV, not every home needs to be in dilapidated condition to be flip-worthy. Before making your first flip, consider these critical factors:
There are two different types of flips
You can treat your flip as purely business by purchasing it as an investment property and continuing to live in your current home. Or, you can try out a “live-in flip,” in which you mix business and pleasure, living in your flip for two years to gain tax advantages later.
A live-in flip scenario will significantly reduce or eliminate your capital gains taxes when you sell your new-and-improved home. If you’re using the home as your primary residence, you can benefit from this scenario by keeping thousands of extra dollars in your pocket.
The main issue with the live-in flip lifestyle is that there is no escape from the renovation. “Work from home” and “work in home” becomes the default scenario, so you might want to take more vacations than usual to get a change of scenery from the in-process interior.
A live-in flip is appropriate when a property is not quite complete but still livable. But if a house is ready for a total overhaul, it might not be healthy or safe to live there full-time during the renovation.
Sellers might not want to buy your flip immediately
Prepare for the fact that it might take some time to sell your flip, depending on market circumstances. While a flipper might sell a flip the same day it goes on the market, it’s also possible that it might take weeks—or even months—to sell in certain scenarios.
A beautiful interior and exterior can make a home very attractive to buyers, but sometimes other factors might delay the sale of a home. For example, if a home is in a noisy area or has an unusual lot size, shape, or position, those attributes might make it more difficult to land a buyer.
When considering a property to flip, it’s essential to be realistic about what buyers want. When your expectations align with the reality of the market, you can approach the sale of your flip from an informed vantage point.
A clean inspection will pay off in dividends later
You can (and should) have a home inspection when purchasing your flip. The home inspection will give you a list of essential repairs that should be the ultimate “to-do list” for your renovation. After attacking the “to-do” list from the home inspection, you can begin to work on any cosmetic issues in the home.
A home inspection will inform you about the health and safety aspects of the structure that you simply can’t ignore. For example, a home might have faulty electrical or plumbing or an issue with the roof or crawlspace. It might have mold or an infestation. In any scenario that can negatively impact health or safety, you need to fix those issues first so they don’t spiral out of control.
Your flip should have a unified appearance
If you want to maximize returns on your flip, updating the entire home will give you the highest likelihood of a top-dollar sale. When potential buyers search for single-family homes for sale in Mclean, VA, they will be treated to a list of beautiful, awe-inspiring properties, and you want yours to be among that list.
Don’t spend the time and money renovating the kitchen only to ignore the dated bathrooms. Don’t spend the effort painting your flip only to leave stained carpeting on the floor. Don’t switch out the windows in your flip to only ignore the creaky old front door.
Potential buyers will notice any inconsistencies that might exist in your flip, and these faulty attributes will only diminish the ultimate sale price of the flip.
Your flip is not the time to dabble in professions that you don’t know about
Yes, you might be naturally handy with fixing things around your house. Yes, you might even have a special skill set, such as basic carpentry, interior design, or something else. You can bring these talents to your flip. But leaving tasks that involve plumbing, electrical, and climate control work to the professionals is crucial.
Of course, there’s the possibility that working on your flip might inspire you to pursue formal education in any of these fields. In this case, you can work on your flip and develop your marketable skills simultaneously. Just be sure to do it safely.
Make sure you’re getting your DIY information from trustworthy sources
Searching the internet for how to do certain things can be a great time and money saver as you prepare your flip for sale. But if you’re not careful, you might cost yourself more time, money, and even your health.
Be sure to examine the DIY sources that you’re looking at and compare them to your current scenario. For example, you might find a video about how to replace drywall on your own, but your drywall at the flip might be covered in lead paint, and you’ll inhale that dust if you demo it yourself. Search for lead abatement services if this is a concern. Or, you might find an article online about installing granite countertops, but the article might omit an essential point about positioning the granite that leaves you to drop it on your foot.
Make sure to think everything through. Flipping offers excellent opportunities to cash in on your hard work, but shortcuts can lead to unintended consequences.
Partner with a professional
Realtor Andreea Leu would be pleased to offer you more insights on flipping homes in McLean and the surrounding areas. Andreea’s keen attention to detail will make it easy to identify potential flips that can help you achieve your goals.
