There are ways to save time and money during the rehab process to increase your profits. Making the right choices along the way will move your flip along and get you to the next flip sooner.
Get free design help.
You don’t have to hire an interior design professional to get advice on materials. Check in at home improvement stores for their services. Bonus – if you purchase the materials through the home improvement store that advised you, there may not be a charge for the design consultation.
Hire students for basic work.
Students or young people in your neighborhood could be an affordable resource for work you might otherwise hire a professional for. For instance, mowing and weeding or basic cleaning such as vacuuming or window washing.
Buy tools rather than rent.
If you’re renting a heat gun to strip wallpaper and paint, consider buying one. Or buy rather than rent a power washer to clean decks, sidewalks and fences. You’ll outlay a little more money when you first make the purchase but you’ll recoup that over the many flips you’ll do.
Find a good credit card.
From small to large purchases, using a credit card that gets you some kind of reward is a way to put money back in your pocket. Find a card that has rewards that match up with what you want, such as cash back or airline miles. Even some gas cards can provide you with cents off each time you fill up your car.
Rent a dumpster yourself.
If you’re hiring contractors to do roofing or tear out, provide the dumpster yourself. This way the contractors can remove the cost of waste removal from their estimates. If you use the same dumpster company repeatedly, you may be able to get discounts. In the game of flipping, there is power in numbers. If you have several houses being renovated at the same time, let them know that you will be a customer with ongoing needs.
Learn how to negotiate effectively.
Contractors and suppliers are open to making deals. Make sure they know when you’re hiring them that you can be relied upon for ongoing work in the future. If you have more than one house that needs plumbing work, see if you can schedule all of the visits for one day and save on some service call fees, for instance.
Take time to plan.
You may feel pressured to get your flip off the ground right away. Being rushed, though, can mean that you’re not thinking things through. Make sure you fully research your plan and timeline. This way you can line up your contractors and materials and get the best deals. The best time to do this is before the property purchase, but be sure to also pencil in time to make any necessary adjustments once you gain possession.