How To Flip Apartments -The Best Guide –

Flip Apartment

How to flip an apartment ? How to flip apartment buildingsĀ ?

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Investing in real estate is one of the main ways to create wealth and achieve financial freedom, as real estate investors, both beginners, and experts, are looking to follow a specific strategy to invest in real estate, and one of the methods that are widely used in the United States is house flipping. which mainly depends on Making renovations in the house that was purchased by a real estate investor and then reselling it at a better price , the business is indeed full of difficulties and a clear plan must be developed to get a good investment. Our website flip apartment specializes in another type of investment related to how to invest and flipping apartments. This is different from flipping houses. The second type depends on increasing the rental rate through modifications in the apartment. Today’s topic explains how to flip apartments step by step. In an exclusive guide, bring a pen and paper to write your notes on the subject.

Best Steps to Flip Apartments:

  1. Target the right type of building
  2. choose the right location
  3. Reliance on the real estate market data in the area
  4. Make a plan and budget for the project
  5. Conducting renovations
  6. Using real estate e-marketing
  7. Making a deal and good property management

The market for flip apartments differs between America and Europe, where most investors prefer to buy an apartment at a low price, then renovate it and resell it at a high price, but in the United States, the issue is completely different, because it is based on increasing the monthly rental rate and getting cash-flow at the end of each month, and getting more money depends on the population units that exist, in addition to the number of renters, depending on the geographic area too. An apartment in New York can increase your profit rate by a higher rate than in other areas like Florida and Chicago.

The importance of flipping apartment complexes instead of houses is to get more money from tenants, whose number is increasing day by day for several reasons, I mention two main reasons, which is the increase in the number of immigrants in America, most of whom are young people who come to work and study, The second major reason is the decrease in new home construction compared to previous years.

One of the most important reasons for the failure of apartment flipping is not investing well in the property by making a bad deal, and not taking good care of the property. The apartment you bought may require a lot of modifications and expenses. 

Target the right type of building

You need to choose the residential buildings well to rehabilitate them, so you, as a real estate investor, need to negotiate well to reduce the price of the property up to 20%, so the characteristics of the apartments must be aesthetically good and not damaged, so as the main goal, explore residential building units that are not so good. It looks in good condition and is not attractive, for example, I mention some features:

  • The building facade is old and unattractive
  • The view into the gardens is not good and unnatural
  • The condition of the roof is not good
  • The demand for this type of property must be good, to resell it at a higher and higher price.

When visiting residential buildings for resale, you should pay attention to the following points :

The problem of the building’s foundation A careful examination of the interior of the residential building is very necessary, because cracks in the walls and ceilings must be well looked for, and I recommend you to ask a professional for help in the process of examining the foundations, to avoid possible issues in future.

You need to estimate the electrical and plumbing work and include it in the negotiation procedure. Indeed, this is not complicated, but it represents a significant cost in itself. Make sure that the electrical and sanitary equipment works well before making the purchase.

flipping apartment buildings
– Old Apartments Buildings –

Choose the Right location

The location in the real estate field is one of the most important factors that must be taken into consideration. The preferred neighborhoods are a solution to ensure the profitability of your investment and the need for its suitability to the future buyer. Therefore, I advise You should carefully study the location before buying, especially the proximity of shopping centers and public transport such as metro and train stations, green areas, and recreation centers.

Urban centers are in high demand in the real estate market and are properties that cater to first-time buyers or renters.

You can find out about the apartment market in your area by consulting a real estate client or by carefully searching the Internet through the major real estate sites in the U.S. Just type in the name of the area and the type of property you are considering buying The site will give you many options. Study them well to avoid a failure of the deal.

One of the good sites I recommend

1. Zillow

2. Apartments

3. Realtor

4. Trulia

Another factor that controls the market for flipping apartments is time, if you are a medium-term investor Far away, you can choose unpopular areas, especially if the market is full.

modern apartments building
-Modern Apartments Buildings –

Reliance on the real estate market data of the area

To make a good decision and close a profitable deal, you need to collect a lot of data and research it, because it is like gold. Many new real estate investors fall into the trap of not analyzing the information well and thus lose their money when investing in apartments.

The need to adapt the turnover strategy according to the target market you select based on your analysis is very essential before you start the flipping process.

Some key insights to consider in the analyses :

  • Population Density in the area
  • Household composition
  • owner/rental ratio
  • Types of units on the market
  • The average rental price in the area

Compare this data with the national average using Google search.

flip apartment new york

Make a plan and budget for the project

Before you start to develop a business plan, you need to know the real estate market similar to residential properties in the area and check the sales history, so you can estimate the market value of the property always ask the following questions :

Are there any properties currently for sale in the area ?

What type of property are they ?

What prices are they selling for ?

What type of property stays on the market the longest ?

When choosing the area that meets the requirements of your deal, set a budget for the property and its renovation costs, based on the fees you need to consider :

1.Real estate agency charges

2.Taxes, insurance

3.Notary fees

4.Bank guarantee fees

5.The cost of renovations

When you renovate, you must be very careful about extravagance, as the risky process of fixing up for resale can cause you to sell the property for less than the full cost of the transaction.

flipping small apartments

5. Conducting renovations

Making the apartment attractive and targeting buyers and renters is the main goal of the investor. Buy the materials that give the apartments a contemporary look, such as tiles, paintwork that includes the walls of the apartments, which I prefer to be white, and the possibility of putting wallpaper as soon as the decorating process, there are many small defects that potential tenants may notice, such as bathroom tiles that may appear broken, socket caps may be missing.

Focusing on the living area in renovations is an important issue, you need to organize in terms of dividing the spaces, and placing the furniture well in them, to meet the needs of buyers as they mainly focus on them.

Double glazing is part of the technical solutions to insulate sound and ensure the tenants’ comfort, especially if the apartments are located in the city center near transportation.

Apartment renovation ideas
Apartment renovation ideas

6. Using real estate e-marketing

Using online marketing techniques to sell real estate can significantly increase your profits, as the price of the property is largely determined by the potential buyers, and the price the buyer is willing to pay for the property.

You can initially rely on social media such as Facebook and Pinterest, the target audience here are real estate investors and renters. These platforms allow you to get offers to resell or rent apartments.

Poor marketing can result in the property not being sold for a long time and remaining on the market for several months, resulting in offers coming in well under the asking price. Therefore, if you are in debt, you just have to accept.

One of the basic principles of marketing is the use of attractive marketing images for the property for sale. I advise you to use a professional photographer to show the positive sides of residential properties for sale, which must be attractive such as the beautiful modern kitchen, spacious and warm living room, bathroom….. It must be The angles of the photos show the dimensions of the rooms and the good features.

flip apartment real estate

7. Making a deal and good property management

After closing the deal to flip the apartments in the residential buildings, which we explained in the previous points, set your goals and investment plan to avoid falling into a bad deal, which will be a very bad experience, especially since it is expensive.

Be smart about investing and spending on renovations that don’t help the deal and may not give you much of a return on your investment.

Get expert help at every stage of the transaction, especially from real estate consultants and renovation companies.

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