If there’s an old house that you want to flip, how will you reconcile the trends of the past with the needs of today’s renters or buyers? Making a profit on a historic home is possible by following these guidelines.
Add the Right Modern Amenities
Historic homes have two main issues going against them that must be resolved before they can become “flippable:”
- Not enough bathrooms/inadequately sized bathrooms
- Lack of modern conveniences (i.e., insufficient electric, not enough outlets, no ducts, etc.)
These issues must be dealt with before you can consider flipping the home. Here are some tasks that you typically need to do to get an older home up to speed with modern demands:
- Seal drafty windows. Buyers often like the character of antique windows, so be careful about replacing them.
- Get an electrician to inspect the electrical system. Make updates as needed.
- Inspect the roof and fix it accordingly.
- Make touch-ups to the masonry as required.
- Examine the heating and cooling units and upgrade to energy-efficient models.
- Modernize the functionality of the bathrooms while maintaining their historic character. Homes with just one bathroom often list for a lower price because modern buyers want at least two bathrooms for convenience.
Maintaining the Antique Feel
Another detail to keep in mind is that homebuyers are drawn to historic homes because of their history and charm. Therefore, if there are any unique period features, do your best to keep them. These buyers want to know and preserve the home’s story, so keep the nonfunctional fireplaces. Preserve the old gas lamps in the walls. Stay faithful to the detailed trim and molding of the era. This may require hiring some craftsmen to spruce up these details, but buyers who love history will pay top dollar for a home with character.
Flipping to Sell
When you flip to sell, you want to make sure you’re going to come out on top financially. The key is to buy low and sell as high as possible with making just the right amount of tuneups. This medium can be tricky to find, but it’s far easier to do with the help of an experienced real estate agent. To maximize your chances of profiting, avoid properties with these expensive problems:
- Foundation/structural problems
- Water damage
- Extreme pest problems
- Drainfield/septic issues
If you can get an inspection, watch for these four issues. These are quite expensive to fix, which can result in you just breaking even or even coming out at a loss. Your main goal in flipping is to fix issues that are affordable and still sell at a reasonable profit.
Flipping for Rent
If you want flip to rent and have years of passive income, you should fix the basics and repair other minor issues over time. This is a great option for new flippers who are looking to gain financial stability. When you become a landlord, protect your wallet by getting your ducks in a row:
- Purchase a home warranty for unexpected fixes.
- Hire a property manager to be a professional intermediary between you and your tenants.
You’ll set the rental price based on how well you renovated your property. Keep in mind that expectations will increase as the rent does and you can always sell the home in the future if the value appreciates significantly.
How to Start Flipping Homes
Are you wondering where to start when flipping a house? To start flipping historic homes, you need money and some expert help. Contact Asset Based Lending to learn more about flipping a historic home for a lump sum profit or long-term rental investment. We can help you get the funds you need to start your money-making journey today.