Are you doing your due diligence before flipping property? If so then make sure you read this blog post to know what are the expenses associated with house flipping in Reno Nevada.
Flipping houses can be a high profit investment strategy. But you will only maximize your returns if you are careful about your costs! If you’re wondering what are the expenses associated with house flipping in Reno Nevada so that you can budget effectively then here are seven of the biggest expenses you’ll encounter.
When you know what cost are associated with flipping a house, you will be more prepared when you find the right house to flip in the Reno, Nevada area.
What Are The Expenses Associated With House Flipping In Reno Nevada?
These are your costs associated with acquiring the property. They will of course include the purchase price of the property but they may also include marketing costs, the costs to meet with the seller, and any clean-up costs, legal fees, or closing costs you cover as a service to the seller.
Demo And Renovation
This is one of the more obvious expenses! These are your costs associated with demolition and renovation. It may include cabinets and counter tops, fixtures and appliances, new carpet and windows, etc. These costs are going to be a pretty major portion of your budget in most situations.
Once you have all the supplies and raw materials, you need someone to do the work! Even if you do a lot of the work yourself, you might need someone to help you or you might have to hire a licensed tech to do some of the work for you.
This expense is often overlooked by the “newbie” flipper but you’ll learn soon enough how important these are: Carrying costs are the costs of utilities (power, gas, water, etc.) that you need to pay during the time that you own the property. These expenses will add up, especially if your timeline is extended. The faster you can flip the property, the less money you’ll pay in carrying costs.
The Extras (Dumpster Rental, Licensing And Permits)
There are plenty of extras that you need to account for in your budget but that you might not realize before you start. These include things like dumpster rental or tool rental or even bringing in lunch for the team! And don’t forget to make sure you have the right permits or you’ll end up with another expense — a fine!
Every flip since the beginning of time has had an unexpected surprise that threatened the budget and timeline. It could be problems like mold or termites, or just a delay due to inclement weather. Nearly every surprise adds an expense to your project so make sure you plan for it so it doesn’t derail you.
You will also incur costs to sell the property, including marketing and furniture rental (for staging). Be prepared for these costs to they don’t surprise you.
If you are counting the cost of your potential flip before you start, you’re wise to be asking, “what are the expenses associated with house flipping in Reno Nevada?” Make sure you account for these expenses in your budget. Expenses aren’t necessarily bad — after you all, you have to spend money to make money!
If you’ve read through this blog post, you’re doing a great job of gathering all the information you need to start flipping like a pro! And we’re here to help you seceded in real estate.
For more helpful tips like Five Renovations to Avoid When Flipping a House in Reno, Nevada, contact us today.
We are investor friendly real estate agents and work with investors to find the perfect invest their needs. Well will find you investment properties that can make you a profit. Even if you decided to flip of hold as a rental. That is why many investor chose to work with us to achieve their real estate goals.
If you are interested in us finding you the perfect investment property that fits your needs, contact us today. You can email us here or call at 775-525-0980. We are looking forward to working with you.