House flipping in Charlotte, North Carolina is at its highest level in more than 10 years. As the area becomes more appealing for working professionals and families alike, properties are being snatched up at a breakneck pace by residents and flippers.
Thinking about investing in a flip in Charlotte, NC? Well, there’s no better time than the present - here are three ways you can make sure you maximize the return on your investment.
1. Location, Location, Location
Location is one of the biggest determining factors of profitability for a house flip in Charlotte. Avoid overpaying by investing in an up-and-coming neighborhood - while they may look a little rough on the surface, these spots are just years (or months) away from becoming the hottest places on the market. In fact, you may even find that many of the properties in the neighborhood have already been purchased by flippers looking to turn a profit.
One such neighborhood is Belmont, bordered by Plaza Midwood to the east and Optimist Park to the west. While the median household income clocks in at around $25,000, the neighborhood is undergoing a rapid transition - so fast that by the end of 2018, you may be hard-pressed to find a deal on property to flip. In other words, it’s the perfect time to invest.
2. Build for Buyer’s Expectations
The easiest way to clear a profit on that next house flip is to know what features and standards future residents expect. For instance, the modern home buyer wants their home to be green and connected. Energy-efficient appliances and smart-home technology will meet their needs and increase the value of your home. Today’s buyer also looks for a modern layout, meaning lots of natural light, open floor plans, and a great kitchen/entertainment area.
While these changes might be a little more expensive, they’ll also increase the long-term value, and therefore sales price, of your home. Buyers can usually tell if you’ve been too thrifty on renovations, and the last thing you want is for people to wonder where else you might have cut corners besides what’s visible.
3. Be Realistic
If you’re thinking about flipping a house in Charlotte, one of the easiest ways to set yourself up for success is simply by setting realistic goals and expectations.
From the start, make your timelines as smart and realistic as possible. Know the scope of the work from the start, work with reputable and well-reviewed contractors, and budget some time for overages. The more efficient you are on every project, the higher volume of projects you’ll be able to complete on a shorter timeline, and the more money you’ll be able to make in the long run.
Also, find the price that’s right for you. While the perfect property is always nice, compromising too much on price is the easiest way to eat into your profit margin. In the same vein, when you’re looking for financing, try to find a lender that’s familiar with the area and has your best interests in mind. Walnut Street Finance, with more than 20 years of experience, offers a wide range of financing options that can help you hit your goals for your next home flip.