Did you know that experienced house flippers can achieve a 10-20% return on investment? Real estate flipping is a great way to make passive income in Houston, Texas, if you do it right.
Even if you aren't great with your hands, you can work with experienced contractors and still make a great return.
Houston is the place to try out this endeavor as it's one of the most populous cities in the United States. It's expected to see another population surge from now until 2029.
Keep reading to learn tips on how to get started.
Research the Houston Real Estate Market
To flip homes, you need to research the Houston real estate market. You'll be able to identify a good deal in an up-and-coming neighborhood with a thorough understanding of the area.
Learn where people want to live and any housing trends. Partnering with a property management company can help you understand market conditions and determine necessary repairs.
Secure Your Finances
A flix and flip is going to cost a significant amount of money. Before you consider a purchase, it's beneficial to have your finances in order.
Paying for the property in cash will save you from building up debt and paying interest before the place sells. If you don't have enough cash, look into crowdfunding sites.
Most mortgage products aren't offered for house flipping. You can finance your purchase with these options:
- Cash-out refinance
- Home equity line of credit (HELOC)
- Hard money loan
In addition to the purchase of the home, you'll need money for repairs and home renovations. Budget for these expenses to ensure your flip is profitable.
Find and Buy a Property
Real estate flipping requires planning. Once you've researched the market and secured financing, find and make an offer on a property.
You won't be able to start flipping the property until you close on it. Closings can happen quickly or take months depending on the seller.
As soon as the house closes, have contractors ready to start renovations. The quicker the work gets done, the faster you can sell the property for profit.
Sell the Property
Cash flow is the ultimate reason you want to flip a property. Once repairs are complete, you can sell the home and get a nice paycheck for your work.
Make sure your property is competitively priced. A great real estate strategy is to work with a real estate agent and property management company who can list your property.
Make note of comparable property sales in Houston and how long they stay on the market. Forecasting the timing and budget is going to help determine your profit.
Start Real Estate Flipping in Houston, TX
Real estate flipping in Houston is a complex and time-consuming process. If you are dedicated to making money on fix and flips, you need to understand the market and secure your funding.
Find, buy, and start renovating your property. When everything is all said and done, you can sell the property for a profit.
At PMI Infinito, we have over 20 years of experience in the real estate market and property management industry. Our services are offered on a local level so we can help Houston entrepreneurs like you.
Contact us today to learn more about our services.