Are you thinking about investing in real estate by flipping houses? If so, then make sure you read this blog post to discover the most expensive blunders that house flippers tend to make… here are 4 mistakes investors make when house flipping in Louisville…
Flipping real estate can be highly lucrative… if you do it right. However, if you don’t do it right then it could end up costing you a lot of money, time, and frustration. We’ve got you covered! We’re sharing 4 mistakes investors make when house flipping in Louisville so you can avoid these blunders and improve the return on your investment.
House Flipping Mistake #1
If there’s one thing that every flipper learns pretty quickly it’s that you can never prepare for everything 100%. Brand-new flippers often forget to “expect the unexpected.” For example, you can look at a property, assume it looks great, and then discover that there are termites. Or you might tear up a carpet and find mold. While troublesome, these problems aren’t the end of the world but for investors who aren’t prepared for them, they can be a costly shock. So avoid this mistake by anticipating additional problems in your project plan, timeline, and budget.
House Flipping Mistake #2
Another mistake flippers make is to hire the cheapest labor possible. Rather than hire qualified professionals, flippers try to pad their profits by hiring any warm body. The problem is: cheap labor can actually be more expensive because they take longer and their work is not always up to the right standards (so it may need to be redone). Avoid this problem by hiring experienced tradespeople. You may spend more up-front but the work will be done right — quickly and the first time.
House Flipping Mistake #3
This is the problem that flippers are simply not even aware that it happens, but it does happen! It’s easy to become emotionally involved in the flip to the point where you forget that you are investing in a property for someone… and often what happens is, the flipper starts making renovation and decoration choices that THEY prefer (versus decisions that are cost-effective and will help to sell the properly quickly). To avoid this mistake, set a firm renovation and decoration budget and continually remind yourself that your goal is to create a house that can be sold at maximum profit.
House Flipping Mistake #4
Newbie flippers acquire a house and do all the heavy lifting to fix up the property, and then they make the mistake of assuming that the sale of the property will be easy. In some markets it might be easy but in other markets that’s not the case! Avoid underestimating the effort required to sell and instead, prepare yourself for investing some additional effort in finding buyers.
Is It Worth Flipping Houses in Louisville, KY?
Louisville, KY, has been experiencing a surge in population growth and economic development, making it a potentially lucrative market for house flipping. As per recent data, Louisville’s population has seen a steady increase, fostering a robust demand for housing. In conjunction with this, the city has been making headlines for its booming economy.
The diverse industrial sectors, including healthcare, logistics, manufacturing, and the growing tech industry, are creating an abundance of job opportunities, attracting people from across the nation. Moreover, Louisville’s commitment to fostering local businesses has created an environment of economic resilience and growth, boding well for property investments.
Safety is another pivotal factor that makes Louisville an attractive place for residents and, consequently, real estate investors. The city’s continuous efforts in improving safety have shown promising results, contributing to a peaceful and secure living environment.
The active and vibrant community lifestyle, coupled with the city’s southern charm, has been drawing people to call Louisville their home. Furthermore, the city’s rich cultural heritage, exceptional bourbon, horse racing, and thriving food scene add to its allure, leading to an uptick in demand for housing.
As such, house flipping in Louisville presents an excellent opportunity to capitalize on these positive trends, offering potentially high returns on investment.
How Long Do Houses Usually Stay on The Market in Louisville KY?
In the dynamic real estate market of Louisville, KY, the average time to sell a house can vary based on numerous factors, including the season, the condition of the property, and the current state of the market. As of my knowledge cutoff in September 2021, it took approximately 30 to 45 days on average for a home to sell in Louisville once it was listed.
However, exceptionally well-maintained and competitively priced properties could potentially sell in less time, especially in desirable neighborhoods or during peak selling seasons.
However, it’s important to note that these timelines are influenced by market conditions, which can shift over time. Market conditions can be influenced by various factors, including economic changes, interest rates, and housing demand.
For instance, in a seller’s market, where the demand for homes exceeds supply, houses can sell more quickly. On the other hand, in a buyer’s market, where the supply of homes exceeds demand, it may take longer to sell a house.
Therefore, if you’re planning to sell a house in Louisville, it’s recommended to consult with a local real estate expert to understand the most current trends and get an accurate estimate of the potential selling timeframe.
Summary
Flipping houses can be fun and profitable… or it can be frustrating and problematic. But you can make sure it’s fun and profitable by avoiding these 4 mistakes investors make when house flipping in Louisville.