Flip Houses to Fund College: 6 Steps to Get Started
Updated: May 11
If you’re preparing to earn your college degree as an adult, you might be exploring financing options like taking out student loans, working part-time, or pulling from your personal savings. However, if you’re skilled when it comes to DIY home maintenance, flipping houses and using the profits to pay your tuition could also be an option! Renting a dumpster from Advantage Waste Disposal can help you keep your job sites clean. Here’s how to put together an offer for a promising property and manage your paperwork throughout the process.
Keep Your Documents Organized
Buying, renovating, and selling a home involves lots of paperwork, and you don’t want to misplace any essential files. It’s a good idea to set up a folder with clearly labeled subfolders to categorize all of your documents. If you have to share certain documents, it’s best to send PDF files rather than formats like Microsoft Word, PowerPoint, or Excel. You may want a PDF file converter for this task! Just drag and drop your files into the tool to easily convert them.
Seek Expert Advice
If you’ve never flipped a house before, you don’t want to put any money down without seeking guidance first. You can definitely benefit from working with a real estate agent who advertises themself as investor-friendly. And if you know anyone else who has successfully flipped houses before now is the time to reach out and ask for their advice.
Find a Property With Great Potential
How can you find the perfect property to flip? This is the most important decision you’ll make throughout this entire process! To identify a reliably profitable flip, Bigger Pockets recommends buying a small property in a desirable neighborhood, especially if it lacks curb appeal now - this means that other buyers will likely overlook it, and you might be able to snag it for a lower price. Try to avoid buying in noisy areas with busy streets and look to quiet neighborhoods in good school districts instead.
Funding Your Fixer-Upper Purchase
What’s the best way to buy a fixer-upper? You have a few possible avenues. SuperMoney states that you may be able to borrow from a private lender or take out a conventional bank loan, raise money through a real estate crowdfunding website, or turn to a hard money lender. Of course, you can always draw from your own savings!
Invest in Profitable Upgrades
Once you’ve made a successful offer, you’re ready to renovate! If you want to drive higher returns, you’ll need to ensure that all essential appliances are functioning properly, add new siding to the exterior, install new doors, update old flooring with laminate hardwood, upgrade fixtures in the kitchen and bathrooms, and spend some time on landscaping.
Set the Right List Price
Listing your house for a low price can leave you with lower profits - but listing it at a high price for your current market could make it tough to attract a buyer. To determine the ideal price for your property, start researching your local competition. Check out homes on your street that have sold recently, and look at their list prices and final sales prices. Make sure to specifically look at similar homes to yours. Use these figures as you determine your own list price while factoring in the value of your renovations.
Flipping houses is definitely a labor-intensive endeavor. But with the right approach to investing, your efforts can pay off in the long run and help cover your tuition bills. With these tips, you’ll be able to tackle every step of the process without losing any key documents!
Do you need to rent a dumpster during your renovations? Turn to Advantage Waste Disposal! Fill out the form on our website to get a price quote.
GUEST BLOGGER SETH MURPHYw/ Papadity.com