- Home flipping accounted for 8% of home sales 2022, providing a stable, profitable investment option.
- This venture offers flexibility, allowing individuals to work at their own pace, full or part-time.
- Home flipping enhances community aesthetics by upgrading disrepair properties and offering a creative outlet.
- The potential profit from successful home flipping can exceed $20,000 per property, turning it into a full-time career.
- Roofing, kitchen renovations, and landscaping are top renovation options for a high return on investment.
Are you looking for a way to make some extra income, or are you interested in starting a new hobby that can lead to a full-time career? Consider trying your hand at flipping houses. While it’s not easy work, home-flipping can be a profitable and fulfilling way to earn a living. Here’s what you need to know about the current state of the home flipping market, why it’s such a great hustle, and which home flipping renovations garner the most ROI.
The Home Flipping Market
It’s estimated that about 8% of homes sold in 2022 were flipped, according to the latest statistics. The average gross flipping profit was $64,945, and the typical return on investment (ROI) was 48%. Competition has been intense recently, with investors strategically targeting homes needing renovation to maximize their returns.
These investors often have access to large sums of cash and are willing to take risks. This competition can make it difficult for small-time investors to break into the market, as they won’t be able to compete with larger investors. But with some strategy and research, you can find homes perfect for flipping, even in a competitive environment.
Why Flip Houses?
Home flipping is an attractive hustle for varying reasons. Here are some of them:
1. Real Estate is a Stable Investment
When you invest in real estate through home-flipping, you invest in a historically appreciated asset. By buying a house, fixing it up, and selling it at a profit, you can make money from both the initial investment and the appreciation in value over time. Additionally, real estate investments are generally less volatile than other forms of investment, meaning the risk of losing your investment is lower.
2. You Can Work at Your Own Pace
Home-flipping is a flexible side hustle that can be done as a full-time job or on the weekends. This means you can work at your own pace and fit it into your schedule. Additionally, home-flipping can be done on your own or with a team – so if you’re looking for a way to work with others, this could be a great opportunity.
3. You Can Improve Your Community
Improving your community’s housing quality is a great incentive to start home-flipping as a side hustle. By finding and upgrading homes that are in disrepair, you can increase the property’s value and improve the neighborhood’s aesthetics. This can positively impact not only your portfolio but the community as a whole.
4. It’s a Creative Outlet
Home-flipping allows you to use your creativity and vision to transform a run-down property into a beautiful, modern home. Whether you’re interested in designing the home’s interior, landscaping the yard, or developing unique features that will increase the property’s value, home-flipping is a great way to explore your artistic side.
5. You Can Make a Profit
Of course, the biggest incentive to start home-flipping is the potential to make a profit. While the amount you make can vary depending on location, cost of the property, and the amount of work required to fix it up, successful home-flippers can make a profit of $20,000 or more on each property. If you have a knack for finding good deals and the ability to use a hammer and nails, you can turn a home-flipping side hustle into a full-time career.
Best Renovation Options For High ROI
If you’ve bought a ready-to-flip home but don’t know where to start, don’t worry. Here are the three best renovation options for the best ROI.
Many people think about the interior of a house first, but one of the best investments you can make in home flipping is to replace an old, worn-out roof. Not only does this improve the aesthetics of your property from the outside, but it also increases its value and durability for years to come. Consider installing a metal roof, which is more resilient than any other one. Contact your local metal roof installation service to do this for you. They can check the home and recommend the material and color best suits your property.
Kitchen renovations are also great investments for home flipping, with an ROI of up to 81%. Buyers often prioritize kitchens when looking for a new home, so investing in this area may pay off significantly. However, you don’t need to go overboard to make a good impression. Consider replacing outdated appliances and countertops with modern ones, adding more cabinet space, and refreshing the paint or wallpaper to give it a new look.
Investing in landscaping can add thousands of dollars in value to your property. Buyers love homes with significant outdoor areas – from gardens and patios to porches and driveways. You don’t need to complete an overhaul; even small changes like adding plants, installing fencing, and replacing old walkways can make a big difference in aesthetics and value.
Home-flipping is not for the faint of heart. It requires dedication, strategy, and hard work to be successful. But with the right approach and some know-how, you can quickly turn this side hustle into a full-time career.