Are you a homebuyer looking for an investment opportunity in Salem, Oregon? If you do it right, flipping houses is incredibly lucrative. Of course, there are many things to consider when flipping a house. From understanding the market and researching neighborhoods to negotiating with sellers and managing contractors, the process can be daunting for first-time flippers. It's essential to understand the ins and outs of the process before diving in.
It can also be a fun and exciting venture for those who love a challenge. And if you’re interested in flipping houses in Oregon, you’ve come to the right place! In this guide, we’ll give you all the information you need to know about flipping houses in Salem.
What is house flipping?
House flipping is when investors purchase a property and resell it after making improvements or repairs. The goal is to increase the property’s value and sell it for profit. This type of investment requires knowledge of the local market, access to financing, and an understanding of what needs to be done to make the home more desirable. It also requires patience—flipping a house can take several months or longer before seeing any profit.
Know your market well
The first step to a successful house flip is understanding your market. Research local neighborhoods and their recent sale prices to understand what properties are selling for in each area. This will give you an idea of what properties are selling well and which neighborhoods offer the potential for the most significant profit. When it comes time to purchase a property, be sure to factor additional costs like taxes and loan rates into your budgeting calculations, as these can vary within a city and county.
Additionally, familiarize yourself with any applicable zoning laws or restrictions that may affect how much work can be done on a particular property before listing it on the market. And one of the best ways to learn a market is to work with an experienced realtor who has had house flipper clients in the area you are interested in buying.
Find the right property
Photo courtesy of Pexels
Once you’ve identified good options based on location, condition, and affordability, it’s time to choose which house is right for you. Look for properties that need less work or have the potential for improvement that can increase their value significantly. Weigh all necessary upgrades against potential return on investment (ROI) before signing contracts or deciding to purchase a property. And add a buffer to your timeline with cash reserves if things don’t go according to plan.
When vetting properties, ensure they are within your price range and have all the necessary permits required by local laws. Also, inspect any homes thoroughly before making an offer—you don't want any hidden problems!
Know the laws and regulations
Before you start your house-flipping journey, it’s important to understand the laws and regulations surrounding real estate investments in Salem, Oregon. You should familiarize yourself and comply with the state’s real estate laws to avoid any legal issues down the road.
There are certain restrictions regarding flipping properties in Oregon, such as taxes and zoning restrictions. Make sure that you understand these restrictions before embarking on your house-flipping adventure. Additionally, if you're hiring contractors or other professionals for your flip, ensure they are appropriately licensed and insured in Oregon.
Rehab and/or make repairs
Photo courtesy of Shutterstock
Once you’ve purchased a property, it’s time to start making repairs and improvements to increase its value before listing it on the market. Ensure all necessary permits are obtained from local authorities before beginning work on renovations or repairs. One of the most critical parts of flipping houses is hiring a professional and reliable contractor. Get referrals and have a contract upfront on the work to be done, the timeline, payment, and penalties for not finishing on time.
To protect yourself legally, only work with a licensed contractor to ensure that all work is done correctly and up to code. Depending on how much work needs to be done to get the home ready for sale, this step could take weeks to months. Document everything during this process (photos, invoices, etc.) because these records will help prove that everything was correctly completed when selling down the line.
Use your contractor as a resource to find out what materials are used in the area to obtain top dollar when selling. They will know the best countertops, flooring, and finishes to make you the best profit. Ideally, work with a contractor that works with other flippers and investors so they understand your vision and goals.
Set a price
As the upgrades and repairs are almost complete, set a price for your flipped property by researching comparable listings in the area to determine what similar homes are selling for. Take into account any additional features or upgrades you’ve made while renovating your property and factor these into your asking price.
Market the home
Photo courtesy of Shutterstock
Finally, once your flipped home is ready, it’s time to market it! Advertise online on social media platforms and through real estate listings via your realtor, where potential buyers can easily browse your listing. Additionally, consider hiring a realtor who specializes in flipping houses, as they can help get your property seen by more potential buyers and maximize returns on investment quickly and efficiently. And don’t forget to get professional photos taken after you have staged the house, as this will help sell the property faster.
If you are ready to sell your flipped house and need a top-rated realtor, contact Rebecca Donaldson, an experienced agent with knowledge of flipping houses in Salem. Or, if you are ready to find your next project, she can assist in finding great homes for sale in Salem, Oregon.
*Header photo courtesy of Shutterstock