Jun 29, 2017

Flipping Homes: 10 Smart Ways to Cut Renovation Costs-

Image Credit: Pixabay
Flipping homes can be very lucrative if you are able to keep a close eye on the bottom line. One of the best ways to maximize your profits while keeping your resale prices competitive is lowering your renovation costs. These 10 tips will help you greatly reduce those renovation costs.

1.   Use the Same Floor Plans
Instead of spending money on an architect to develop new plans or using online floor design software, you can utilize floor plans you used for properties you have flipped. This will help streamline your operations because each home that has similar square footage should have a similar floor plan.

2.   Hire Freelancers
To leverage your time and resources, consider hiring freelancers in your area. These individuals have experience in carpentry, plumbing and renovation. Since these freelancers work on an “as needed basis” you only pay them when there is work that needs to be completed. By forming a core team of competent freelancers your turnaround times should be reduced which helps you flip the property faster. (Try to time your renovations during the off-peak season so you have a ready supply of high quality freelancers to choose from!)

3.   Use a Cashback Credit Card
There are cashback credit cards that offer 5% or greater on every dollar spent. This cashback feature can really help you save money with every purchase.

4.   Invest in Good Quality Power Tools
Professionals will have their own tools but, for freelancers or as backup, you should consider getting your own. Wait for clearance sales on power tools and scoop them up. By having reliable tools on hand your workers will be able to maximize their productivity.

5.   Buy in Bulk to Save
If you are planning on performing multiple renovations in a short period of time you should purchase your building materials in bulk. Reach out to the manager of the home renovation store you buy your products from and meet with him/her in person. Let them know you are planning on doing a significant amount of work and ask them for a discount. The manager will provide you with a discount but you need to take the first step and ask.

6.   Use Discontinued Product Lines
Your local dealer may have inventory that has been discontinued and looking to sell quickly. You may be able to get these products for pennies on the dollar so it is worth investigating.

7.   Streamline Your Work Processes
To get the quickest possible turnaround time you need to streamline your work processes. Firms like FlippingHouses101.net utilize a robust process. By scheduling your work properly you can reduce the amount of time it takes to flip your home(s).

8.   Use Simple to Install Flooring
Instead of putting in a hardwood floor which requires time and experience, you could opt for a laminate floor. The quality and appearance of laminate flooring has really improved in recent years.

9.   Do not move plumbing and electrical fixtures
By avoiding this common mistake you are going to save a huge sum of money. Plumbing and electrical work requires licensed professionals who charge a premium. If you use the same fixtures you don’t have to deal with this hassle.

10.       Always ask for a better deal
This is a tactic most house flippers simply overlook but it works more often than not. If you never ask the answer is always “no”, so ask for a better deal whether hiring staff or purchasing materials and you can’t go wrong.

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