We all spend most of our lives looking for easy hacks, ways to get the most out of what we’re doing for the least possible effort. It’s not laziness, it’s efficiency: the adage “work smarter, not harder” has made many a self-made businessman, and knowing how to navigate the current economic climate to our advantage is the best thing we can do to set ourselves up for success in the middle of a worldwide disaster.
The real estate market has been notoriously… let’s say flexible, for want of another word. Yet, for those who are able to capitalize on its highs and ride out it’s lows, the real estate market can present one of the fastest ways to make a living with minimal effort. Investing in and flipping properties gives you, the real estate investor, one of the fastest ways to earn a steady stream of passive income: whether you rent out your properties for years at a time or use them as vacation rentals, you’re practically guaranteed to make the most of your investment, what with the real estate market thriving in the wake of the pandemic.
Yet, for those who have never approached the real estate market before, the idea of putting thousands of dollars into property can be daunting. How do you know you’ll go about renovating and marketing these homes the right way? This guide aims to give you a basic understanding of the steps you’ll need to take to successfully make a career out of flipping homes, turning them around for minimal effort and maximizing your profit while making them as appealing as possible to your chosen audience. Whether you’re considering long-term leasing or listing your property as a vacation rental, you will be prepared to cash in on this market of all-time highs and set yourself up for success thereafter.
Location is Everything
In real estate of all kinds, location is king: choosing a location where people will want to settle down increases the likelihood that your property will go off the market quickly. Choose properties that are in typically safe neighborhoods or complexes, areas that are also reasonably close to cultural hotspots such as restaurants, shopping centers, and movie theaters. If you’re investing in vacation rental property, choose properties that are within walking or driving distance from popular tourist destinations, such as theme parks, national monuments, and other landmarks: a good rule of thumb is that the further you get from such areas, the less likely it is that your property will be preferred over others.
Minimal Effort, Maximum Profit
Once you’ve decided on a property that you feel is worth investing in, it’s time to give it a closer look. Do a walkthrough of the property, taking note of things that you feel will need renovation: while you will not be able to see more thorough issues with the naked eye, such as foundation issues or electrical problems, you’ll be able to eyeball cosmetic things that may need a little TLC, as well as potential pest problems like termites, rats, and the like. After this walkthrough is conducted, make sure an inspection is performed so you can be aware of any issues that may cause your chosen property to become a money pit.
While some issues are worth the risk of treating, like pest problems or leaky roofs, some will absolutely destroy your budget and tank your chances of making a significant profit on the property. Remember to try and invest in properties that require minimal effort to revamp and put on the market.
Build Yourself Some “Sweat Equity”
If you’re in this field, you better like DIY projects, because sometimes the best way to save money and maximize your profits is to fix what things you can yourself. Take a look at your skillset, decide which issues you’ve noted can be repaired by your own two hands, and then get to work. Anything that you botch can be repaired by a contractor later, should you mess something up on your first go.
The idea is to minimize the amount of spending on your part. You’ve already put a bunch of money into this property: now, you’ll need to put some physical labor in to avoid putting more into it. What you can’t fix yourself, however, you should absolutely hire a contractor for: dangerous issues like foundation issues, electrical or heating problems, and the like are always best handled by a professional.
There’s no such thing as easy money: to earn your steady stream of passive income, you’ll have to put in quite a bit of work yourself. But with the right guidance (and the right market, of which we’re blessed to have at the moment), you can set yourself up for success for years to come with a relatively minimal investment of money and effort.
