Do you know the biggest reason house flipping projects fail to generate revenue for investors? It’s underestimating costs—a common topic in many books on flipping houses.
So, how do you renovate if your house flipping project is already hanging on a shoestring budget?
If you are strapped for money for your fix and flip project you are in luck with current generations.
Millennials and Gen Z have embraced minimalism, organization, functionality, and repurposing over large, expensive, high-maintenance, dust-attracting furniture.
Another reason to go minimal is that your taste might not align with what your buyers are seeking.
If you need inspiration for simple, functional design, look at Japan—the country, and mainly the capital Tokyo with its tiny apartments, has been embracing minimalism and functionality long before it became mainstream.
Do it Yourself
What more fun way for the budget-conscious house flipper to renovate a home than going DIY?
This way you can customize and repurpose stuff to create unique items that, if made well, can make the property more appealing.
DIY also means that you have full control over which materials to buy, and how much to invest in any part of the renovation.
This will let you skip on mark-ups, distribution, and assembly costs.
It’s how IKEA—a favorite shopping point for DIYers—can keep such low prices—by letting customers do the transportation and assembly.
Did you know that the sharing economy is also booming in the construction industry?
There are now many companies and online platforms where you can rent anything—from power drills to floor polishing machines.
By renting equipment, you can go wild with your ideas, without splurging thousands on power tools.
Of course, you’ll be better off with only renting tools that you know how to operate—your house flipping project is not the right time to experiment with this stuff.
Search for Deals
Online second-hand marketplaces, flea markets, and garage sales are all places where you can find amazing deals on quality items.
It is not rare for homeowners to even give away furniture for free—you’ll only have cover delivery.
Moreover, such places offer older models, from the times when manufacturers didn’t sacrifice quality for production volume.
For example, now it’s quite hard to find affordable furniture made from solid wood instead of plywood.
People used to frown upon the idea of buying second-hand, but it has become quite trendy, though second-hand purchases do carry risks so beware.
Organize Your Network
Why not utilize your network of friends and family and save on labor costs?
While they’ll likely help you out of the good of their hearts, you can sweeten the deal by sharing portion of the earnings from the sale.
What’s more, by involving more people, you’ll be bringing more fresh perspectives on how to approach the renovation project.
However, don’t go overboard. The more people you get on board, the quicker you’ll finish and place the property on the market, but if you do compensate them for the work, you’ll also give away more money.
To conclude, if you are researching how to get started flipping houses, you’ll inevitably find out that such deals come with costs that the TV series don’t show.
But only because you are low on hard money doesn’t mean you can’t do a good job—what you need is to invest them in a smart way.
Granted, you will have to spend money even with the tips laid out above, but it will be considerably less than if you tackle the fix-up without a plan.