Flipping Real Estate in Central Ohio
Buying, rehabbing, and re-selling homes is a great way to make money in real estate!
Why "Flip" Real Estate?
First off, let's address the question of what is flipping? While this term can have different meanings, for the sake of this page, I'm referring to the buying, rehabbing, and re-selling of homes.
So why choose flipping, versus traditional real estate investing (i.e. long-term rentals)? The obvious reason is money. Flipping tends to be more profitable than other types of real estate investing, primarily because it requires more money and more time. If you have excess time, money, and perhaps a knack for fixing things, then flipping houses might be for you!
How To Do It Profitably
Historically, there are two main ways to make money by flipping real estate:
- Buy, hope property values go up, and sell for a profit
- Buy, remodel the home to add tangible value, and sell for a profit
Option 1 works in boom markets, but is highly speculative. This is generally not the type of flipping I engage in. Rather, flippers should focus on making money by adding real value to a property. Now more than ever, people are busy and simply aren't as handy as they used to be. Most people balk at the idea of buying a home that requires a lot of work. Therefore, you as a flipper, can make a lot of money by turning an outdated, obsolete home into a stylish, modern abode.
Here are some of the best things you can do to add value to a home:
- Convert unused space into an extra bedroom or bathroom (a 4 bedroom home is worth a lot more than a 3 bedroom home with the same square footage)
- Increase the size of a master bedroom, bathroom, or closet (especially in old homes with small spaces)
- Re-paint walls and trim
- Completely remodel the kitchen and all bathrooms
- Add a patio
- Basic landscaping (new mulch, flowers, trimming, etc.)
- Tear down walls to create an open, modern floorplan
If these strategies are properly applied, there's a lot of money to be made. Let's look at an example...
Purchase Price: $100,000
Down Payment: $20,000 (20% down)
Remodel Cost: $50,000
Resale Value: $175,000
Carry Cost: $5,000
Closing Costs: $12,000
Project Length: 6 months
Resale Value - Purchase Price - Remodel Cost - Carry Cost = Project Profit
$175,000 - $100,000 - $50,000 - $5,000 = $20,000
Project Profit / (Down Payment + Remodel Cost + Carry Cost + Closing Costs) x Project Length / 2 = ROI
$20,000 / ($20,000 + $50,000 + $5,000 + $12,000) x 0.5 = 46%
ANNUAL ROI = 46%
How Do I Get Started?
Now that you know some of the basics of real estate investing, it's time to take it to the next level. Below are links to some of my favorite investor resources, as well as some featured investment properties in Central Ohio. You can also contact me at firstname.lastname@example.org or 614-395-1776 to schedule a free investment consultation. I look forward to speaking with you soon.
Choosing the right real estate agent is the key to finding your perfect home, negotiating a price you can afford, and ensuring you unlock the door to your new home with a smile. And that’s where The Alfriend Group steps in. We’re more than just a group of agents, we’re local residents, active members of the community, and we are a seamless team dedicated to serving your every need on our quest to help you find your dream home.
With over 20 years of residency in the wonderful city of Dublin and two decades of real estate experience, lead agent Kyle Alfriend of the Alfriend Group has the local knowledge and the real estate expertise to ensure you find the right home in just the right location. His supporting team members of The Alfriend Group are always available to answer your questions, ensure your needs are met, and help you discover Dublin.