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Tips for 'Fixer-Upper' and 'Flip It' Homes Gene and Katie Hamilton have spent their careers remodeling older homes, writing syndicated columns and books, and making TV appearances to talk about home repair and do-it-yourself projects.
Their most recent book is Fix It and Flip It: How to Make Money Rehabbing Real Estate for Profit (McGraw-Hill, $18.95).
The book offers checklists (what to know and do before you sign that contract), time lines for two-month, six-month or one-year projects; and formulas for running the numbers to see if a project makes sense before you buy.
Katie Hamilton offered these quick dos and don'ts at a roundtable discussion when the National Association of Real Estate Editors met recently in Charlotte, N.C.:
Do work only in a neighborhood you've studied. Who's buying there? Who's going to buy there? Is this a neighborhood on the way up?
Do work with a local real estate agent who knows the market. Real estate agents often buy and flip property themselves, so on the one hand, they're your competition; on the other hand, they know the market from an investor's point of view.
Do spend conservatively. It's too easy to run over budget. Do the math and realize that every extra penny you spend comes out of your profit.
Don't get involved in fixing and flipping "if you are involved in a full-time job," Katie said. The project is far more time-consuming than you imagine.
Don't assume that your spouse or partner has repair/rehab skills you didn't know about, or that he or she has a personality that lends itself to challenges and multitasking. A spouse who has never picked up a paintbrush is not going to morph overnight into an experienced painter.Don't skimp or use unlicensed workers on key tasks such as plumbing or electrical work. The building must meet the code.Don't start a flip job in the wrong season. Katie talks about a sudden storm ripping the tarps off a roof under construction. You may not want to be without a roof during the summer rainy season in Florida.
Words to the wise from Katie: "It takes twice as much time and three times as much money as you expect."
© 2006 The St. Petersburg Times, Judy Stark, Homes editor. All rights reserved.
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