Get In On The "Fix and Flip" Market

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Real Estate

Get In On The "Fix and Flip" Market

We have gotten back into a "hot" market in NW Arkansas, where we are seeing more and more "fix and flip" properties coming up for sale. A "fix and flip" can be a great investment opportunity.  It's important to have a contractor bid out all of the work needed, so you have an accurate estimate of the repair costs.  It is also important for you to stay on budget and stick to the plans you make your decisions from (as much as possible).  Quite often, unforeseen costs will arise, so these should be accounted for as well, when making your budget.  The NW Arkansas real estate market is primed and ready for investing in properties to fix and flip.  In addition, the current inventory of homes for sale in the region is low, which is creating pent up buyer demand in the area; as a result, many new listings are receiving multiple offers in the first few days on market, which is causing prices to increase.

Here are some good tips, if you are thinking about a "fix and flip" for yourself: 

l Order a dumpster for the next ten days and get your demolition man to throw out everything including the kitchen sink. In other words, clear the decks.


l After the house is cleared of debris, it’s time to patch and paint. Let your painters blast the place with their airless paint-spraying arsenal inside and out. Within three days, you’ll have added a huge improvement to your investment. This is the biggest dollar-for-dollar return you can make. Make sure that quality paint is used. “When it comes to painting,” Dan Auito, author of “Complete Home Rehab in 10 Days,” says, “it’s the labor that kills you, not the material. If possible, insist on Sherwin Williams Super Paint. It is a miracle-type formula that covers up bullet holes without any patching compound and it lasts forever. It’s worth every penny; insist on it.”


l After the painters leave, the flooring guys can lay tile and carpet, which will take two to three days.


l Next bring in the cabinet installers and handyman plumber.


l Last comes light fixtures, vanities, toilets, sinks, doors, switch plates and outlet covers.

If you are thinking about getting into the fix and flip market, it will be crucial to have the right real estate agent working for you. First, you should always have an agent working for you as a buyer (the seller is the one who typically ends up paying their commission anyway) to make sure your best interest is firsthand.  Second, in a hot market, it's a must to act quickly when a new property listing comes on the market.  Third, you want an agent who can complete clear, accurate market analyses for you to use to make your fix and flip decisions.  Fix and flips can be fun, or they can be a nightmare; so, make sure to do your homework before you get started... and good luck!