Fix and flip investing is all about minimizing your costs wherever possible - after all, every dollar you save during the renovation process is another dollar in your pocket when all is said and done.
In that spirit, here are a few helpful tips to save some serious money on the cost of materials for your next investment property.
Choosing the Right Materials for Your Property
Eventually, whether it’s the interior or the exterior, you’ll need a fresh coat of paint for some part of your flip. The best way to save on that paint is to ask your local hardware store if they have any ‘oops’ paint - cans that are either slightly off-hue or that a customer may have opened and returned. Either way, you can save big on a perfectly good can of paint, and your buyer will never know the difference.
The same idea applies for many materials or items that you’ll need along the way. For instance, you can save big on bags of dirt, mulch, and fertilizer that may have torn open and been taped back up, or that have been opened and returned. If you’re buying any electronics, you can often negotiate a great deal on display items, especially if you can pay in cash.
When you’re looking for building materials, stores often have remnant stock leftover that they can sell for below-cost. These are often items that have been returned by picky customers, were cut to the wrong size for a previous job, or may otherwise have some minor imperfection. The same goes for overstock or discontinued materials - all you have to do is talk to an employee or manager to see what they’re selling that’s not on display.
Finally, it’s important to remember that an investment property doesn’t always require the best possible materials to get the job done right. In fact, depending on your prospective buyer and on how other houses in the neighborhood appear, the materials you choose may vary greatly from flip to flip. You might choose vinyl or carpeting over hardwood for floors, quartz countertops over marble, or cabinets with a veneer versus all hardwood. At the end of the day, if you want your investment to be profitable, all that matters is that you build something that’s up to your buyer’s standards while keeping your costs at a minimum.
Landscape Without Hurting Your Wallet
Quality landscaping is an easy way to up the curb appeal on your fix and flip - but it doesn’t mean you need to break the bank to do it. For instance, you can invest in hearty yet inexpensive plants like a flowering cherry tree or some groundcover juniper - these plants punch way above their price point and will be easy on the eyes for potential buyers.
When you’re choosing plants, it’s also important to distinguish between annuals and perennials. While perennials will look great and come back year after year, they can also be a good deal more expensive than annuals. If you’re planning on selling your property before the next growing season begins, you should stick to the cheaper option - while the garden builds curb appeal, it won’t necessarily increase the value of the home, so it’s best to avoid breaking the bank on it.
Whatever you end up purchasing, if possible, try to time the landscaping portion of your renovation around season’s end. In order to make room for new merchandise, nurseries will often deeply discount last year’s plants, which could result in big savings on your flip.
If you’d like to learn more about maximizing profit on a fix and flip investment, check out our free ebook, Essential Math for the Fix and Flipper.