- Real Estate
Flip a House Tips and Tricks
Why investing in San Antonio realty is beneficial?
Besides being one of the most populated cities in America, it is also filled with history, culture, and great real estate investment opportunities. San Antonio real estate could be very profitable. Forbes listed San Antonio as number 3 for top 20 housing markets to invest in this year. Also Wallet Hub had San Antonio listed as number 3 for healthiest housing markets in big cities and was ranked top 5 for single-family housing markets by Auction.com.
How will investing in San Antonio realty earn big money?
San Antonio’s cost of living is little by comparison, and has a ranking of 16.6% below the national average. Other energy dependent cities in Texas are feeling the effects of an oil slump, but not San Antonio. San Antonio is the second largest city in Texas and spreads across an expanse of Central Texas countryside. The size of the city alone allows a wide city limit and, therefore, keeps prices moderately priced.
San Antonio has a growing population and job market.
San Antonio’s population is growing fast and is nationally ranked seventh as one of the most populated cities. San Antonio’s job market is firm, with jobs ranging from oil and gas industries to manufacturing and military jobs. During the recession, San Antonio’s unemployment rate never went above the national average and now sits at under 5%. In other words as an investor in San Antonio realty, the property values will increase with the growing population of the city making it a seller’s market.
How to flip a House?
Flip a House tips and tricks
- Get a real estate license: When you go to sell, agent transaction fees can eat into your real estate profit. Getting a real estate license can take 2-3 months and cost anywhere from $400 - $1,000. The main costs are the license application fee (just about all states have an online application), and a fingerprinting/background check fee. Also you will get a commission on the buy side when purchasing your flip property.
As an added bonus of being a real estate agent is that you can help family or friends with their real estate deals and make even more real estate profit.
- Finding a great location to invest in: Look for an up and coming area, an area with a healthy economy. Choose a house that is affordable with minimal repair work that you can do yourself. By choosing a house within your scope of know-how, you can cut back on a great deal of expenditures(hiring contractors or outside help) and save money.
- The Cheaper House: Most people would buy a house that doesn’t need repairs. You can get a cheaper price on a fixer upper with minimal cost, thus increasing your real estate profit.
- YouTube is your buddy: When you flip a house and you want to keep cost at a minimum, YouTube will be the best tool in your toolbox. YouTube has just about any home improvement skill that you will ever need to learn and is explained in great detail. You might be nervous when hanging your first cabinet or laying down your first tile, but if your patient, take your time, and follow the instructions you will do just fine.
- The live-in-flip: If you don’t mind the mess and all of the dust, the live-in-flip is a great way to save money while doing repairs to the house you want to sell. You basically just stay in the home you purchased and make repairs until complete. As an added bonus, the IRS Publication 523 states “you can exclude up to $250,000 of gain ($500,000 if married filing jointly) on the sale of your home” if you meet the eligibility test. One of the requirements states “you owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale”.
- It is ok to hire out, but be cautious:When you flip a house; choosing the right contractor can be risky. More often than not you tend to get what you pay for. Don’t always pick the first one, be patient, shop around, and ask friends or family who they have used. Also never pay the full amount until the job is done, and done right to your satisfaction.
Ways to make a real estate profit using property.
- Buy-to-Rent: Buy-to-rent is often referred to as buy-to-let(a british phrase referring to the purchase of a property specifically to rent it out). Buy-to-rent involves purchasing a property with other people’s money like the banks; with the sole purpose of renting it out and eventually making a profit from the rental.
- Lease-to-Own: A lease to own(also known as rent-to-own) is a lease combined with the option to buy the property within a specified period. The lease stipulates how the rental will work out for a set period. At the end of that period, the buyer has the choice to buy the home. A portion of the rent is usually put aside in a lease-to-rent contract as part of the down payment needed to purchase the home.
- Rent-to-Rent: Rent-to-rent is very similar to buy-to-rent. Rent-to-rent involves renting a property at cheap price in order to rent it out for a profit. It is very important to ensure that your lease allows for sub-letting before you even consider a property for this purpose.
- Flip a House: The “flip a house” investment strategy involves purchasing properties with the goal of selling them for a profit. Real estate profit can be generated a couple different ways. Either through appreciation that occurs as a result from a hot housing market or from renovations and capital improvements or even a combination of both.
- Vacant Properties: Vacant properties are nice in the sense you don’t have to do anything to them. The key to a vacant property(also known as raw land) is to find one in an up and coming area that a developer would want to build on. Keep in mind you will want to find a vacant property that is easy to build on. Once you find a good vacant lot that you can purchase at a cheap price; all you have to do is wait, do nothing, and just wait for the right buyer.