If you’re thinking about flipping a multi-family property for the first time, it’s likely that you have a ton of questions. Here, Nick Debeyiotis shares what it takes to get your multi-family property up and running.
Understanding Your Investment
Nick Debeyiotis shares that it’s key to fully understand what you’re getting yourself into when you decide to purchase a multi-family property with the intention of flipping it prior to renting it out. It’s important that you work with an inspector who is thorough and can advise you of whether purchasing the property is a smart move.
Once you understand the type of work that you’ll need to do on your property before you can begin renting it out, you’ll be able to understand the additional capital you’ll need to invest in order to move toward turning a profit. Debeyiotis says that it’s key to factor in the cost of your time and the cost of materials if you’re planning on doing the work yourself.
Consider Your Time
As mentioned, your time is key. While flipping a property may seem like a job you’ll be able to accomplish in your spare time, working a full-time job in addition to trying to flip a property can be exhausting. It’s important that you consider your resources and the amount of time you need to recoup following a full work week. If flipping a property requires that you run yourself into the ground, it’s likely not going to be a great idea long-term.
Know Your Skills
If you already have some of the skills required to flip a property, doing the renovations yourself can make sense. If you’re a fast learner and already have many of the tools needed to fix up a multi-family home, spending some time researching ways to complete tasks may be simple. If you aren’t handy, you’ll need to consider whether you have a reliable contractor who can work with you to make the repairs necessary to start renting out your property
Know The Market
No matter how much time and sweat you’re willing to put into your multi-family property, you’re not going to be able to make a profit if you don’t have the skills you need to get people into your apartments. Learning how to market on social media and get the word out about your properties is key to making your investment worth it. It’s a good idea to network with other people in the area who own multi-family properties, as you may have a good home for a potential tenant they’re unable to house, and vice versa.
Expect The Unexpected
Above all, it’s important to know that when you’re fixing a property, things are going to go wrong. Don’t count on your investment making a profit right away, and be ready to spend extra time and money getting your property up and running.