Flipping Your Next St. Louis House? Don’t Make These Rehab Mistakes
Flipping St. Louis houses is one of the most popular real estate investments today. Television shows make it look so easy, but this is a big investment that can go very wrong if you do not do your homework. For this reason, you will want to avoid these rehab mistakes.
Trying to Save Money By Hiring an Inexperienced Contractor
No matter what other decisions you make on the flipping of a St. Louis house, if you hire the wrong contractor all of the other work that goes into the flip will be negated. You need a contractor that you have a good working relationship with and that you can trust. The contractor is your representative on the project every day and will keep you updated on the progress of the project.
Time and again studies have shown that most failed flips are the result of a contractor that fails to hold up his or her end of the bargain. Here are some tips to avoid hiring the wrong contractor.
Take advantage of your personal and professional network. It is usually safer to trust a contractor that is recommended to you than to take a chance on someone you know nothing about.
If you do have to find a contractor you have never used, make sure to treat finding someone like a job interview. You need to interview multiple candidates and expect professionalism and courtesy on their part. If they don’t act the part in the interview, they won’t act the part on the job.
Focus On Areas with Return
What are the areas that sell a St. Louis house? Watch the home shows on television and you will see what areas the professionals focus on. Areas like bathrooms, kitchens, curb appeal and master suites are what sells houses. This means that these are areas most of your budget should be spent on.
You also need to be familiar with the St. Louis market in the area that your rehab is in. If this is a middle class neighborhood, you will not get a good return on your investment to spend a large portion of your budget on high end finishes.
Don’t Try to Skip Staging to Save Money
Many people make the mistake of trying to save money and skip staging their property. A lot of times an investor might have already exceeded their budget, so they try to save money on the back end by skipping the staging. This is a mistake.
Staging a St. Louis home allows buyers to envision what it would look and feel like to live in the house. It is also shown in study after study that staged homes sell faster and for more money.
Stay Focused On Your Investment Strategy
It is easy to get lost in the hectic process of flipping a St. Louis home. That is why you need a plan before you start. And then you need to refer to that plan throughout the process.
Remember that you are flipping this St. Louis house for a profit. Don’t fall in love with the house and spend money that you will not make back.
When flipping a St. Louis house there are plenty of opportunities to make rehab mistakes. Avoid this by having a plan and being disciplined. Work with professionals you trust and fight the temptation to cut corners.