To Fix-N-Flip?
That Is The Question...

If you are new to real estate investing, the thought of making thousands and thousands of dollars (within a couple short months) might look very appealing to you.

Unfortunately these days, with smarter-investors and smarter-banks, the fix and flip days just aren't as lucrative as they used to be. Although there is still money to be made (or equity to put in) if you and your realtor find a home that has no major plumbing, structural or electrical-faults (unless that's the area of your vocation) and that just need a little "face lift".

Have your realtor "comp" the area and see how the house is priced. Add up the expected cost of repairs - add in another 30% for unforeseen items and see what the difference is. If you shop right, you can still make $10K or more on a home.

Here are some quick and simple ways to give a house an "equity face lift" or make a place easier to rent:

#1 - A little landscaping - this adds to initial "curb appeal". Low maintenance is the way to go with plants, shrubs, trees and flowers. Choose perennials that come back year after year and perhaps some conifers that don't shed. If you are in the process of selling, make sure the lawn is mowed and free of excessive weeds for good initial impression.

#2 - A coat of paint - you'd be surprised what this can do for a home interior! Stick with neutrals or a professionally suggested palate so anyone renting or buying can picture their own furniture in the space. Many local hardware stores have a selection of pre-set color palates you can adopt as your own or 3-5 colors that all go well together and/or mix with some white surfaces.

#3 - Ceramic tile - tile an entryway or include the kitchen and bath(s). For relatively little money, you can do this upgrade yourself or hire a pro. It simply adds style and panache as well as longevity and durability.

#4 -The quick-cabinet makeover - people will inspect kitchens and bathrooms closely. If yours could benefit from a coat of paint on the cabinets or just some new door and drawer pulls, consider investing in these -often for less than $100 - to give your place the added edge.

#5 - Fixtures, fixtures, fixtures - if the lights and ceiling fans in a home are older than say 20 years or so, consider a fixture update. You can easily and affordably replace old dingy fixtures with classy but simple new ones from your local store. Keep it especially bright in the kitchen and bathrooms - other more intimate areas like the living and dining area, consider dimmers. Create a consistent mood throughout by having everything get the same matching finish, like stainless, silver, brushed nickel or white. If faucets are old and gross, get new ones to match the other fixtures. Most plumbing fixtures these days can be mounted by a do-it-yourself enthusiast - no plumber needed, except sometimes for tub/shower.

#6 - Windows - take a look at your windows. Can you see out of them clearly or are they a little blurry or smudged? Sometimes this cost-free pick-me-up can have a house in the sunlight show its real "true colors"! If the windows could use a clean, take a day and do them thoroughly inside and out - you will be blown away by the difference you will notice!

Professional window washers are also an option if you're afraid of heights or just want to delegate the project. Also are the window dressings stylish, but almost un-noticeable? They should be the icing on the cake, with light airy-colors and fabrics/materials that set the mood but are not intrusive.

Try not to have too much of the windows openness blocked by the window treatment as this will make your square footage feel smaller. If you need to add height to the room, have your dressings go all the way to the ceiling to bring the eye up, even if the window starts 2 or more feet lower.

#7 - Flooring - if it's flooring that needs "a little love", consider some less expensive but very durable newer options to full fancy carpet throughout.

• Floating floor: Pergo was the first company to advertise this widely, but many less expensive brands can be found that are just as good. Basically it looks much like a hardwood floor, is hearty & durable and available in many colors and styles. The "planks" are laid parallel to each other and "snap" together, never actually glued to anything, hence the name "floating".

  They are great for older homes where settling may occur - ceramic or linoleum tile just crack & separate from each other, the floating floor stays snapped together & just "floats"!

• Industrial carpeting: often more cheaply acquired, this is the same stuff you'll see in hotels, restaurants and offices. Add a high-grade thick padding underneath & you've got very lovely, yet very durable carpeting. This is best idea for rentals or high-traffic areas and basements.
• Carpet tiles: Another great idea for rentals or families with children. Whenever an area is stained or damaged, one only need replace that carpet tile(s) specific to the damage. MUCH cheaper than replacing a whole room.

To be honest, fixing and flipping is definitely NOT for everyone! As a Minnesota real estate investor myself, I prefer to find well priced properties (that are already in good repair) then rent them out for monthly-cashflow and equity.

But if you wan to try your hand at it - just be prepared (both psychologically and financially) for plenty of unforeseen repairs and updates as you go. But if you are wise and tenacious - you will succeed...

At the end of the day, the updates and improvements will be a function of your skills and your taste. Ideally keep the money in your pocket as much as possible - while still getting the look you want in your house.

Use your resources and ask friends or local experts when you get stuck - even getting a quote from someone else about doing the job, can often yield you new ideas you wouldn't have come up with on your own, whether you choose to use them or not!