It’s easy to get deceived into thinking house flipping is a quick and painless way to make tens of thousands of dollars. Just about every major cable network has a reality show touting the money-making benefits of flipping…but what’s the real story? If you’ve ever considered renovating homes in the Atlanta area for profit here’s the cold, hard truth you’ve got to accept before you dive in:
Throw Your Budget Out the Window: Even if you think you’ve saved enough, even if you’ve put in an extra 10% “just in case,” you’re still not even going to be close. The unfortunate reality of flipping is that no matter what you see on the surface there’s still all kinds of expensive structural work lurking just beneath – this is particularly true for foreclosed homes bought sight-unseen. Whether it’s mold, foundation issues or just the natural disintegration of an unlived-in house, it’s going to cost you.
You’ve Got to Know Professionals: And not just any professionals, reliable, competent ones. In a market the size of Atlanta that’s harder than you might think so start building a portfolio now if you’re still just considering the flipping game. You should have trusted professionals like Pell Plumbing on your go-to list for specific projects and no matter how tempting it sounds it’s never a good idea to hire ‘some guy your brother’s personal trainer knows’ to do a major renovation project. Trust us.
It’s Going to Take Time: Particularly if you’re new to the game the learning curve’s going to be steep. It’s going to take you months to learn the ins and outs of what’s necessary, what’s cosmetic and what’s worth spending the big bucks on and all the mistakes you’ll make along the way are going to cost you. Time means money when you’re carrying a mortgage (and paying per-hour laborers to sit around and wait on some other contractor to finish his project) so plan ahead when you’re budgeting your time and your money.
This Market Really is Tough: You know who’s still making money in the flipping game in Atlanta right now? Development companies. They’ve got the money to buy multiple homes and flip them in a matter of days – there are few weekend-warrior renovators able to squeak out a large profit in today’s market…it’s just math. If you’re itching to get into flipping now’s a great time to get a game plan together for when the market picks back up. It will and you’d better be ready and waiting.