Renovating and Flipping Residential Property in the U.S.

Did you know that Australian and New Zealand investors are making big profits by buying, renovating, and flipping residential property in the U.S? It is very possible to buy a property for under $100,000 USD, spend $20,000 USD on renovations, and then flip or sell the property for $200,000 within a year. That gives you a profit of $80,000 USD, which is more when converted back into NZD or AUD.

Only some properties will have the potential to flip for such huge profits. Still, profits in the tens of thousands are ordinary for investors who buy suitable properties in the U.S. If you’ve used American house shows like Flip or Flop, you’ll know that the profit potential is good. The trick is understanding the U.S. property market and what makes an excellent property to flip for quick profits.

Flipping a Property in the current U.S. Residential Market

This section will discuss the current economic market, including that you can purchase a U.S. property for under $100k, renovate then flip that property for a profit of up to $50k within a few months or a year.  Due to the differences in the economic and property markets in the U.S., compared with Australian and New Zealand property prices, it is highly possible to find affordable homes in good condition, needing only a quick update in the kitchen or bathroom to sell at a profit.

Search for U.S. properties under $100k, as you could be shocked to see the quality and size of properties available. Properties have a smaller buy-in price in the U.S., making the houses more affordable. In Australia, we would consider that a house under $100k would be “cheap and nasty”, but this is not the case in the U.S.

The affordability of the buy-in makes investing in U.S. residential property a key to diversifying your investment portfolio to include property, especially if you cannot yet afford property in Australia or New Zealand. You can invest in a U.S. property to flip it for profit and use the profit to create a deposit for your home down under. Then, re-invest the initial investment to buy another U.S. property for your portfolio to keep building your wealth.

Buying a U.S. Property to Flip

Buying a property to flip is different from looking to buy a property to live in yourself or as a long-term investment, where you want the rental income to build your wealth. When you want to flip a property, you want a low buy-in price, so you can sell it quickly for a profit to make your wealth.

Looking for lower-priced properties in popular or growing suburbs can be a great way to select a property to flip. If the area is experiencing a boom or growth period, people will be interested in buying a newly renovated property.

You can find bargains that may only need a few renovations, as the vendor needs a quick sale to cover other debts or due to changing life circumstances. Sometimes, a house from a deceased estate will sell at a lower price to sell quickly because the heirs prefer the money to spend on maintenance on a house they do not want.

Understanding the local property market can significantly assist you in assessing whether a house is a good option for a flip. Getting help understanding the market and what you need to look for in a flip investment property from a property coach and people who are experts in the U.S. residential property market will help you successfully buy your property.

You want to find a suitable house with good foundations without needing complete plumbing or electricity connections overhaul.

A minor renovation, such as knocking down an inside (not a structural wall) to create a modern open plan living space or updating a bathroom or kitchen, will not add too much to your renovation bill. It could, however, add a great deal to the sale price of your property after the renovation.

How to Organise the Renovation

Once you have purchased your property in the U.S. to flip, you’ll need to organise the renovation. The reports you receive during the buying process will help you to understand what is needed. Before you finalise the property purchase, you should create a plan for renovation, including costing and time to know how to budget for the renovation.

Hiring a local well-trusted property manager can assist you in getting the right tradespeople working on your investment property. You’ll also find that communication between countries can be challenging, especially with time differences. Hiring a project manager or property coach who understands the processes involved and how to communicate across time zones will help ensure your renovation costs do not balloon.

Plan a definite and clear scope of work for engaging the tradespeople to complete the renovation. Be specific about what is included and any unnecessary items for the work. Commit to a payment schedule that is connected to work completed. Plan the stages carefully and know each stage’s budget so you can release the funds quickly. Tradespeople who have been paid for Stage 1 are happier to start Stage 2 quickly.

Selling the Renovated Property

The renovation is complete, and it is time to flip your property. Selling the property well will make a difference in your profit. It may be worth getting your original real estate agent (the one who sold it to you) to do a new evaluation of the property. They will know how much has changed and appreciate the value your renovations add to the property.

Marketing the property as a high-quality, newly refurbished, or renovated property in a sought-after area can help increase your profits. As an investor from Australia or New Zealand, you’ll realise higher profits than a U.S. counterpart selling the same property because of the advantage of the exchange rates between USD and AUD or NZD.

Getting expert help in buying, renovating, and flipping a U.S. property can make a massive difference in the profit you realise. Finding a property coach who can help you to learn through this process will help you to diversify your investment portfolio and make a profit, not only on this first flip property but on the following properties you buy in the U.S. Gaining knowledge and learning from experts who have successfully navigated the U.S. residential property investment market can help you in your journey towards wealth creation.

To discover more about the current U.S. property market and how to find a suitable property to flip to create your wealth, click here.