Real estate is incredibly competitive at the moment. Housing prices are sharply on the rise in most markets, and the house flipping market is, to be frank, starting to get saturated. That isn’t to say you should avoid getting into the career if it’s something that interests you, of course.

I’m just saying that there are some challenges you should be aware of, and that the differences between a mediocre investor and a decent one (and a decent one and great one), are now more pronounced than ever. Here’s where I come in. Today, I’m going to toss a bit of advice your way that helped me out immensely when I was first getting started – a few tips that’ll ensure you fall on the right side of that spectrum, rather than the left.

1. Keep Your Contractors On Speed Dial

One of the most important pieces of advice ever given to me about real estate investment was the importance of having a trusted crop of vendors you can Turn to when you need things done on your property. These need to be people you can trust, and people you know will do a great job. If you haven’t started building a relationship with a plumber, electrician, carpenter, and more, now’s the time to do so.

2. Know Your Costs – And Your Sales Window

How much will you have to pay in renovations? What’s the likelihood of an unexpected expense cropping up? How long will the Rehab take? What is the property’s projected days on the market – how long until you sell it? These are all questions you need to know going in – you should never make an uninformed decision when flipping houses.

3. Renovate In All The Right Places

When someone’s buying a house, chances are good that they’re going to be looking at aesthetics before anything else. A great kitchen, beautiful floors, an attractive bathroom, awesome bedrooms…these are all things a prospective buyer is going to look at before they start thinking about electrical work and plumbing.  

That isn’t to say you shouldn’t still spend money on those – you need to if things aren’t working right. Just know that first impressions are everything, and if you want your property to make a positive first impression on prospective buyers, it needs to look good.

4. Prepare Your Permits

Sure, you could just up and tear down a wall here or remodel an entire basement there. But doing so without the right building permits is a recipe for disaster. Plus, buyers tend to pay more for a property whose renovations were done legitimately.

5. Crunch The Numbers

Real estate rehab requires a head for numbers. You need to think about how much your renovations are going to cost. You need to think about what the market looks like, and how much a property is really worth. You can’t make emotional decisions in this business – it needs to be all about raw numbers. Make sure you have strong, comparable properties to compare prices to, and only pay above asking price if you’re absolutely certain it will be worth the investment.

Don’t Flip Out

House flipping can be a difficult career, but it’s also an immensely rewarding one, provided you know how to turn a profit. And with the advice I’ve laid out here, you do.

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