Houses in the United States of America, particularly in California, are known for their architecture and design. This makes any city very walkable as you don’t just enjoy good weather but also the sites you see in the busy streets and the residential area. Yet, some neighborhoods are under attack by abandoned and rotting houses.
What were once stunning homes are contaminating their neighbors and might cause many nightmares to potential buyers. These are called “zombie houses” and must need expertise and years of experience to flip them, bring them back to life and turn them into top-dollar homes for sale.
Create a Team of Experts
In sports, they say, “One man can win games, but it takes a team to win championships.” This principle works not only in sports but in every area of life. You need to be part of a good team to achieve good results. And it doesn’t take too much to create a cohesive team that may serve as the brains for any house flipping project.
You need a realtor who will scout for properties and close the deal for zombie houses for sale, a designer who will create reliable floor plans and will focus on the exterior and interior design, and a project manager to create the budget, manage the budget, and oversee the whole project from day one to the open house sale.
Hire Licensed General Contractors
Brains work better with good muscles to act. That’s where a good construction company or licensed general contractor comes in. House flippers must look for contractors with years of experience, a good track record with their clients, and many successful projects in their records.
For example, Culver City is a fairly walkable city in California with a Walk Score of 75. Culver City is home to approximately 39,501 people, where 63 homes have been sold.
In addition to houses in Culver City, 62 condos, 11 townhouses, and 18 multi-family units were for sale. If a licensed general contracting company plays a major part in those statistics, then you have one of the best partners for your zombie house flipping project.
Budget, budget, budget
House renovation or house flipping is never a cheap venture. Much more if you will be working on a “zombie house.” So it is important to come up with a workable budget and put a few extra dollars on an emergency plan to avoid the shock of surprise expenses. When it comes to budgeting for a house renovation, you should be ready to spend more than you think you have to.
Remember that you are working on a zombie house. This means that your project may include and is not limited to many years of abandonment, rusted or broken pipes, sills plate which may be susceptible to water, insects, and other external elements, and electrical systems that should keep up with modern appliances.
Now that you have a direction budget-wise, the first step to begin your house flipping is buying the zombie house. And in buying an abandoned house, normally the property owners or the bank are wide open for negotiations and may sometimes agree for an amount lower than they are asking. Remember that you are still a paying customer, so do not shy away from negotiations. You will definitely benefit from negotiating wisely, so don’t take it as something that you should avoid doing.
It’s All About Profit
After purchasing the zombie house, carefully considering the possible expenses, and weighing the possible unexpected expenses, it is time to target your possible profit. Remember that this is still a business with an investment, so expecting a return of investment is only fair.
For example, you have initially purchased the zombie house at $145,000. Then for 4 weeks of renovation, you have a house flipping budget of $50,000 and an emergency budget on the side for $20,000.
With a good team of planners who are visionaries at the same time, a great construction company in the forefront of the project, and a hefty profit as your goal, it is best to sell your newly renovated house at $285,000, making a $70,000 profit for you and your team.
Zombie house flipping is not just a good money-making business. It is also a very satisfying project for those who love constructing beautiful houses and serving the community by giving them good neighbors, too.
We discussed careful thought, some planning, and constant communication between architects, planners, and contractors with the four tips given above. House renovations should be successful, profitable, and enjoyable all at the same time.