So you want to flip a house in Eugene Oregon? Here is how I started…..
It does sound fun, right?
Buy this amazing house, toss some cash at it and boom, sell it for a higher price than what you have into it. In the end, you get a huge check and start the process all over again. Seems pretty simple right? It is never simple, but understanding a few of the basics will help. Getting started isn’t that hard either.
If you are going to flip a house in Eugene Oregon there is a smart way to get started.
Starting with your primary residence is the fastest way to start flipping houses. That is how I got started. The first step to getting started is to learn to extract value out of your home. If you haven’t purchased a home yet, then find a home that will allow you to extract value out it.
The biggest and best tax advantage for the average person is the power of tax-free home sales. If you live in your home 2 out of a 5 year period, your home sales gain can be tax exempt up to 250k if your single and 500k married. Often people overlook this basic principle when wanting to start flipping. It’s also a great test for yourself to decide if you would want to flip houses you don’t live in.
Flipping in Eugene is no easy task if you already have a primary job. Taking 2 years to get your home ready is probably a smart move if you don’t intend to quit your day job.
Extracting value out of your home isn’t that hard. Most homes need some updating. The key is knowing which updating brings in the highest return. Kitchen’s, master baths, fresh paint, and flooring are just a few of the quickest ways to add value fast. A proper assessment of your home is the only way to know what will return the highest for your home.
Finding the right contractor is key. Overpaying for updates is the fastest way to lose the gains you could’ve had. A good contractor will be able to give you solid pricing on your home flip.
Here are 5 simple steps to get started.
#1- Properly access your home. You need a professional who is capable of generating you a detailed list of what items should be done to your home to extract the most value.
#2- Determine work you can and will do vs work you can’t or don’t want to do. Be honest with yourself. If you are working 40,50,60 hrs a week already, can you really complete a kitchen remodel alone?
#3- Create a plan and determine your timelines. Starting a home remodel without a plan is like saying you are going to sail to Hawaii but you have never been on a sailboat. Most people would probably advise you against that. A house comes apart and goes together one way. If you get the steps wrong it will likely cost you more money in the end.
#4- Create your team. On your team, you will need a home designer/stager, realtor and a contractor. A great home designer/stager can help you pick the right colors and products for your home. Remember how you want a home might not be what the masses want in a home. It is best to stay neutral to appeal to the masses.
When looking for your realtor, find one that either flips property themselves or has experience with it. A good realtor should be able to help you determine your current value and your future value after the updates.
A good contractor in Eugene is a reasonable person who isn’t the most expensive and isn’t the cheapest. You want to find the guy who is in the middle. Make sure you check into your contractor’s work history before hiring them.
#5- Money, you can’t do it without money. If you don’t have money saved up, there are a few things you can do. Get a home equity line of credit. If you already have equity in your home this is the fastest way to access it. Borrow money from a family member. Offering a family member a return on their money is another great way to go. Partner with your contractor or realtor. On the right project, we will partner with homeowners to help them get renovations done before selling their home.
Flipping in Eugene can seem complicated when you first start to think about it. My best advice is don’t over complicate the process and keep it simple. Start with your own home. If you break the process down into steps it is a lot easier to understand. Taking the first step is always the hardest.
I’m always happy to chat real estate investing or helping you understand how to successfully flip your home in Eugene Oregon. If you have any questions feel free to contact me at firstname.lastname@example.org