In order to be successful with your flip loans, you need to have a strategy for rehabbing a property to increase its value by a significant percentage. For some areas, you’ll only need to do a few updates to the kitchen and bathrooms, new flooring, and sprucing up the landscaping. In other areas, it is a good idea to do more intensive work, like adding bedrooms or bathrooms. Before you take on a house that’s going to require a lot of overhauling, be sure to look carefully at the market. What size houses seem to be in demand? How many bathrooms and bedrooms do they have? Be sure to make a careful estimate of the repair costs and factor that in when applying for fix & flip loans. When you start working in an area, get to know a few experienced real estate agents. They can help you with the intricacies specific to the local market.
Fix & Flip Loans Require Lots of Research and Good Strategy
Once you’ve decided to continue with adding significant square footage, look for houses that will be fairly simple to convert. One strategy for adding a bedroom is to convert a formal dining room. This will typically include adding a closet, enclosing the open wall, and adding a door. Another good way to add on to a house is to enclose a small porch area. Often these spaces are large enough to also add a bathroom. Sometimes it’s worth it to extend the kitchen or move appliances like the washer and dryer if they’re in the kitchen. In some areas, a detached garage is a good candidate for conversion to a living space. However, be sure to check in with your real estate agents, because some areas prefer to have the garage. Zoning regulations come into play, as well, if you decide to add a bathroom to a converted garage.
If you need to get in touch with an experienced California lender for flip loans, contact LendingXpress. We’d be happy to help you figure out the best way to structure your ventures.