Several novice home flippers would try and do several of the remodeling tasks on fixer upper homes on their own, but this can consume so much of an individual’s time and effort. The most experienced house flippers know the importance of finding ways to save on remodeling the distressed home which can lead to minimizing the cost and maximizing the profit. This article would discuss several tips and tricks on how a house flipper can reduce the remodeling cost of a fix and flip.
Save Money on Remodeling Cost: Do-It-Yourself
There are remodeling tasks that are too time-consuming that is not worth the exhaustion and effort, but there are simple DIY tasks that a house flipper can do without the need to compromise on the time that they spend working on the project.
1. Purchasing Time Saving Power Tools
There are tools that can be used during house flips that can help in saving up on time and effort. However, most newbie contractors do not see the value of power tools and how they can be helpful for their business in the long run. These tools can be used for a long period of time, which can result in more savings and can be used for several projects.
It allows the home flipper to avoid incurring continuous cost from renting these tools. The most basic tools that a home flipper should acquire are hammers, screwdrivers, wrenches, tape measures, paintbrushes, power washer, cordless drill, nail guns, belt sander, pliers, and different types of saws.
These are the kind of tools that are essential in a fix and flip since it can be used for several kinds of fix and flip projects. Power tools make more difficult tasks easier and it can help eliminate the potential labor cost or rental cost, especially during cases where the project would only require minimal work.
For example, a fixer upper house requires minimal paint work on a kitchen wall. Hiring someone to do the paint job can cost $50 or so since this will also include the rental of tools such as a heat gun, power rollers, paint scrapers and brushes, on top of the cost of the paint itself. However, painting one wall becomes extremely doable when the home flipper is equipped with the right tools and it can allow them to save money, since they will only spend for the paint.
2. Save Money by Using DIY Accents
A great way to improve the appearance of a fixer upper home is to add certain decorations around the house. It adds to the appeal of a fixer upper and it provides a more livable “feel” to a home. There are various sites such as Houzz that provides inspiration on how to redecorate a home.
Pinterest also provides tutorials on how to create additional home decorations. The seller can make use of old items in order to save money and find different ways to make use of them. Modern homes can become more appealing to buyers if the flipper pays close attention to details.
A buyer would find a home that is filled with accents to be more pleasing to live in than when you compare it to a bare house without any decorations. Buying a decorative accent can be expensive, so it is easier to save money if the user will simply create or DIY the decorative accent. If DIY is not your area of expertise, you can look through flea markets and find great bargains in there so you can still save money.
The cost of DIY frames can be immaterial and the home flipper can also add in decorative plants that can also send out a more lively vibe to potential buyers.
Save Money on Remodeling Cost: Buying in Bulk
3. Buy Clearance Materials
Purchasing materials at a discount is great, but house flippers should also realize that buying clearance materials can cost even less. Several store owners are eager to get rid of materials with slight damages and scratches and house flippers should take advantage of these kinds of sales since it can allow the flipper to save money.
There are several stores that stock up on discontinued and remnant materials and a flipper can buy them and store them properly to use over the course of several projects because they can always find a fix and flip project that they can use these materials on. Since these kinds of materials are cheaper in price, it allows the flipper to spread the cost and save money in the long run.
4. Buy Builder Grade Material
When doing a fix and flip project, it is not always necessary to use top of the line materials. It is vital to remember that you are flipping a house to generate more income. Purchasing high quality materials that are expensive can possibly cause the flipper to incur losses. It might be viable to consider purchasing builder grade materials in order to save money.
These kinds of materials just need proper maintenance so that it can be used in areas and rooms around the fixer upper house that are given lesser importance. Most buyers would put more focus on the materials used in the kitchen, living room, and the main bedroom. Therefore, home flippers can use builder grade materials on the other rooms around the house.
5. Pool Materials for Other Projects
Buying materials in bulk can be useful for home flippers who work on several projects because they can spread the use of the purchased materials over the course of several fix and flip projects. Similar to purchasing basic necessities in bulk, purchasing building materials in bulk can also allow the user to save money since store owners are more willing to provide a larger discount for bulk purchases.
This can also be applicable for the labor expenses incurred for several projects. The flipper can list all the works that are needed to be done by certain laborers and ask the laborers to finish all these projects in one trip. This method can enable the home flipper to maximize the labor fee and save money, especially since the investor can optimize the minimum cost that laborers charge.
Save Money on Remodeling Cost: Saving up on Time
6. Hire Students to Save Money on Labor Cost
Hiring professional laborers can be very costly and most flippers can save money by hiring students during their breaks. There are lightweight tasks that can be carried by students and since they are not professional workers, they do not need to be paid as much as regular laborers so the flipper can save money on the labor cost.
Ralph R. Roberts and Joseph Kraynak elaborates on how hiring students can be able to be of help to home flippers for fix and flip projects:
Students are willing and well-qualified to perform small renovation chores such as:
Mowing, weeding, trimming bushes and trees, and planting flowers
Patching and sealing driveways and walks
De-cluttering garages, basements, and attics
Vacuuming, window washing, and other cleaning
Demolishing old storage sheds
Tearing out old carpeting
Patching and painting inside and out
7. Stick to What Clicks
Most experienced home flippers already know which method works best. They also know which design is the most appealing to buyers. If the user sticks to what works, they can save time and eliminate indecision. They can also save money, since they do not need to waste their finances on materials that would not add value to a home. It is easier to buy things in bulk if the flipper knows that the money would not go to waste.
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In conclusion, fix and flip projects do not come cheap, but there are ways that a flipper can save money without the need to compromise on the quality of their work. Fixer upper homes can be improved in a manner that would not necessarily break the bank. It is important to remember that you are in this business to earn, but it is also vital that you are working with the intention to learn.