Buying, fixing, then selling properties is a lucrative venture, and the number of homes being flipped annually is on the rise. In fact, according to a report released by ATTOM Data Solutions, house flipping hit a 10-year high in 2016, noting that there were 193,000 flipped homes across the country. But identifying the right real estate investment requires you to find properties with features that appeal to buyers in the current market.
Here's what to look for during your search for the perfect investment property to fix and flip:
A House in a Popular Neighborhood
Home buyers are dying to get into a home in the hottest DC neighborhoods, and they are often willing to overlook certain features in hopes of living in a valuable area of the city. According to Data Lens DC, about 29 percent of houses in Truxton Circle and 28 percent of homes in Mt. Vernon Square have been flipped. Search for smaller, older homes in hot areas in hopes of finding a lower-priced property that can quickly be fixed and sold.
A Property with Little-to-No Curb Appeal
Traditional home buyers might pass on homes with faded, peeling paint and overgrown landscaping, but these properties are very desirable for real estate investors. You can often get these homes for a good deal, and spruce up the exterior for minimal costs. A fresh coat of paint and planting a few flowers and bushes can instantly improve the marketability of the property.
A Single-Family Home
The majority of home buyers are looking for single-family properties, so it's best to focus on these types of properties for your fix and flip investment. The goal is to purchase a property that will sell quickly once it is spruced up.
A Home Without Defects
When you are searching for an investment property, identify features that can easily be changed within your budget and note items that are too difficult or costly to tackle. Low ceilings, galley kitchens and sloping foundations may be things that are too expensive to fix and may be out of your budget, but keeping them may deter buyers from considering your property. Be sure that you purchase a fix and flip investment property that you can change for the better.
A Property with 3 Bedrooms
Most home buyers need at least 3 bedrooms in their future house, so these homes generally sell the fastest once they are listed on the market. You will find that there are buyers from every age and stage of life who are interested in purchasing a home that has 3 bedrooms, making it easy to market.
Now that you know what you look for, it's time to begin searching the hottest DC neighborhoods for the best investment properties. To learn more about securing private financing that is fast and flexible, contact us at firstname.lastname@example.org now.