Buy, Renovate and Flip
Real estate investors have a unique set of concerns when buying properties for resale. Time becomes a major factor when purchasing a house which needs renovation. Experienced investors know that renovation projects will often go over budget and past schedule, so it is best to allow for that when deciding on a potential investment. The expenses which have to be accounted for in addition to the initial purchase price are closing costs at purchase, renovation expenses, holding costs (loan payments, utility payments, etc.) and fees associated with the subsequent sale.
Planning is Key
With all of these expenses to consider, proper planning is an important part of a real estate investment. It is important that you know exactly what repairs need to be done and what the market value of the renovated property will be. Have the work scheduled to take place as soon after closing as possible. Make sure everyone involved is aware of your deadlines. Closely supervise the work to keep things as close to the budget and deadline as possible.
Make the Right Changes
A good rule of thumb is that remodeling will increase the value of the property more than less visible structural repairs. As far as major remodeling projects go, adding a bath or updating a bath or kitchen will usually add the most extra value to the property. Houses which only need cosmetics such as paint and flooring can bring an even better return on your investment dollar. And don't neglect the outdoors. Outdoor living spaces such as decks and patios are a great way to increase the perceived value of a property, and beautiful landscaping adds to that all-important "curb appeal" to create just the right first impression which will help you get top dollar for your investment.