Are you contemplating your first real estate investment? Is it a potential renovation? Let us share some of our experiences with you to help you get started.
First – You need a property to rehab. Contact the Philly Home Girls and we’ll help to find you something.
You may or may not know that you can’t simply get a mortgage on a shell of a house. That’s right folks. A mortgage is a home loan. To a bank a “home” has four walls, a roof, finished floors, and good windows, a functioning kitchen, a functioning bathroom and working utilities. We may be over simplifying these sentiments, but it’s true.
If you don’t have cash to buy a shell, get a crappy house in a good neighborhood that’s got the makings of a home and mortgage it. That’s what we did on 1619 Eyre St.
Second - After acquisition you’re going to need cash to pay for the work to the house. Here’s a neat pie chart that can help you work out a budget based on your qualifications for a mortgage, and the amount of cash you have to do work to the house. It’s best to have an experienced Realtor help you through this process, so contact us and we’ll you predict the market trends in the area you can afford to buy in. By looking at the past sales and the current development in the area we can help you speculate your potential outcome.
Once you identify the property you’re going to flip, you need a contractor to do some work to the place. Unless of course you’re going to do it yourself. We start with a home inspection with our friends at Everest Home Inspections. Our wonder inspector Dave, has a handy list of repair costs you can use as cheat sheet when you hire your contractor. We can recommend lots of great contractors, including UnitedMakers.com, Tyce Renovations LLC, or Anthony Esposito. Contact us for a list of our preferred contractors that our clients refer to us and we refer to our clients.
Here are some before and after photos of a flip that the Philly Home Girls did in Fishtown.
Don’t be afraid to take risks and apply your style to your rehab. Choosing finishes can be the most fun and enjoyable part of flipping a house. The most successful rehabs are the ones you’d live in yourself.
We look forward to seeing what you come up with, listing your renovation for sale, and finding the perfect buyer to love your rehab and make it their home.