Selling a fix and flip property fast in Kenosha-Racine is the best way to make a profit on your investment. As any real estate investor knows, it can be challenging to find the right buyer for your home. Selling any house fast Wisconsin usually depends on the state of the housing market. However, there are ways to sell an investment property fast in any market.
Flipping a house in Kenosha-Racine can be a great way to turn a profit. But, it’s never as easy as it looks on T.V. After investing time and money into renovating an old property, the last thing you want is for it to sit on the listings for months.
Here At Home Buyers, we are a professional real estate investment company with experience in the Wisconsin property market. We have dealt with ‘fixers and flippers’ for years in the local area for many years. We’ve seen what works when selling a house fast and what doesn’t. So, we want to share the best advice about how to sell a fix and flip house quickly in Kenosha-Racine.
What is a Fix and Flip Property?
A fix and flip house is a property that an investor buys to renovate it and sell it for a profit. Usually, the house is in poor condition, so the investor can buy it for a knock-down price.
Common reasons for houses being sold in an “as-is” condition include foreclosure, abandonment, or lack of maintenance.
How House Flipping in Kenosha-Racine Works
For house flipping to be successful, the top real estate investors in Kenosha-Racine buy houses in any condition for cash, invest money in the property, and sell for a profit. This type of investment requires buying for the right price, calculating the cost of repairs, and working out the after repair value (ARV).
As a general rule, successful real estate investors in Kenosha-Racine work to the 70% rule. This means that they never pay more than 70% of the ARV, minus the necessary repairs. The ARV is how much the property is worth after repair.
How to Flip a House in Kenosha-Racine Fast
To make sure that your fix and flip isn’t a “fix and flop,” there are a few factors that affect the final selling price. If you get these things right, you are well on your way to making your first profit. Here are the top ways to flip a making a profit on a fixer-upper in Kenosha-Racine.
1. Location is crucial
Much of the property’s value is tied up in the location. Home prices vary substantially from neighborhood to neighborhood. A house in one area of Kenosha-Racine may have great value. However, putting the same house in a different location—even just a few miles away—can drastically change its value.
Always do your homework to find the most profitable neighborhoods. Or do market research to find up and coming areas in the city.
2. Renovate to your target market
The next way to make a profit flipping a Kenosha-Racine house is to know your target market. For example, the type of renovations required in a single-family home in the suburbs is different from an apartment for a young professional. So, the rehab needs to fit the style and needs of your buyer.
3. Don’t over-improve the home
To ensure your fix and flip is profitable, you need to renovate the house to a high standard, but not go overboard. One of the biggest house-flipping mistakes is to install high-end appliances or technology that doesn’t add to the home’s value.
As a rule, replace the ugly, broken, and other things that don’t work. Go for a minimalist look, remembering that the buyer will want to add their own touches. They may even tear out your new kitchen cabinets if they don’t like them.
So, remember, more upgrades don’t equate to more profit. If homes in the neighborhood sell for $150,000, you’ll never make a profit on a home that costs $100,000 to buy and $75,000 to repair.
4. Do the math
In the end, numbers are all that matter to a savvy Wisconsin real estate investor. Before you close the deal on a Kenosha-Racine fixer-upper, know what you want to sell it for. Ideally, aim for the lowest price possible that allows you to make a profit.
When you roughly know the ARV and know the cost of repairs, you are in a better position to make a fair price offer on the derelict house.
We always advise real estate investors to give themselves a cushion when calculating the cost of repairs. With any fix and flip, there are always unforeseen surprises that can add a few zeros to the final repair bill.
Mistakes to Avoid when Fixing and Flipping Houses in Kenosha-Racine
When taking on a fix and flip property, there are certain mistakes that you must avoid at all costs. Unfortunately, some Kenosha-Racine investors have made these mistakes, only to realize that they lose money on their investment.
Here are the top five mistakes to avoid if you want to make a fast buck on a Kenosha-Racine fix and flip house:
- Not having enough money—Investing in real estate expensive. So, you must have enough capital to see the project to completion. Remember, your goal can’t be to break even on the property. You also have to budget for taxes, market fluctuations, and unexpected repairs.
- Too little time—Flipping a house for a profit can take time. There is the task of finding a run-down property for a great price. Then you have the rehab to do. Finally, you need to market the property to sell it fast. Give yourself enough time so you don’t make mistakes.
- Lack of skills—The best way to maximize your profit selling a Kenosha-Racine house is to do as much work as you can. Think of this as “sweat equity.” The more skills you can master, the greater your profit will be.
- Lack of knowledge—Too many investors make the mistake of jumping in without due diligence. They see the reality T.V. shows and think that flipping for a profit is as easy as pie. But, the most successful real estate investors are those that know the relevant construction techniques, zoning laws, tax laws, and have a network of trusted professionals.
- Not enough patience—It takes time to buy the right property, hire the right contractor, and accept the right offer. The top real estate investors in Kenosha-Racine buy “for sale by owner” properties or offer cash for properties in any condition.
How to Sell a Kenosha-Racine Fix and Flip Home Fast
One of the best ways to guarantee a sale on your rehab investment is to sell your property for cash. Our team is ready to make you a fair cash offer on your house today. All you have to do is call us at 262-228-8505 or fill out this easy online form.
What if you’ve run into difficulties with an investment property? For example, if you realize that the repairs are too expensive to make it worthwhile? In these situations, it’s best to cut your losses and sell your Kenosha-Racine house for cash.