Lauren and Lincoln, aka the “Austin Flipsters”, secured a $60,000 profit for their client by turning a fixer-upper into a dream home (see video below). With a budget of $100,000, the couple managed to work wonders, transforming a 1995 4-bedroom home into a masterpiece that was bought for $320,000 and sold for $540,000. With all the costs factored in, their client walked away with just over $60,000 in profit from this flip.
How did they do it? Let’s take a detailed look at which upgrades they made to this house and how they managed to stick to their budget. Along with this, we’ll look at 5 top tips for getting started with flipping houses.
Key Upgrades
The team did an extensive renovation to this home but there were key upgrades that they did in order to get the biggest ROI on the overall project and increase the market value as much as possible.
Foundation and Structural Repairs
A major issue with the property was that the foundation was shifting due to the soil. The Austin Flipsters addressed this by inserting concrete pylons and leveling the slab, which was crucial for making the house marketable.
Along with this, a new roof was installed because the existing roof was either damaged or nearing the end of its life. A complete replacement was done, which cost about $14,000. This was a necessary investment to ensure the structural integrity of the house and prevent further water damage.
Kitchen Refresh
The kitchen had outdated fixtures and finishes that weren’t appealing to modern buyers. So, the team did a full remodel to the kitchen, which involved painting the cabinets a neutral gray, installing new Quartz countertops, fitting a new backsplash, putting in new appliances and adjusting the height of the counters to be lower and more accessible. These updates were intended to make the space more functional and appealing for buyers, who typically view the kitchen as the focal point of the house.
A Splash of Paint
The home had different paint colors in each room, which created a disjointed feeling. The Austin Flipsters used a single color pallet across the home, to give familiarity and create a flow throughout the home. A neutral color pallet is typically the best upgrade to the color scheme in a house that you’re going to flip, this allows buyers to imagine the space as their own.
Modernize Flooring
The old carpets and dated tiles throughout the house were unattractive and could detract from the house’s market appeal. To rectify this, all the old flooring was replaced with new, modern flooring options like carpets in the bedrooms and tiles or hardwood in various areas. The team spent about $7,000 upgrading the floors throughout the house, which would pay itself off in ROI at the end of the flip.
New Fixtures
The house had outdated fixtures in most places, and this, combined with the inconsistent paint colors and styles, created a disjointed aesthetic. All outdated fixtures, including lighting and hardware, were replaced with modern, attractive options. This, combined with the new paint, gave the house a more consistent and modern feel which made it more appealing to a wider range of buyers.
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5 Top Tips for Getting Started with Flipping Houses
If you’re just starting out with flipping houses, here are 5 of the top tips to get you started on the right path.
1. Budget Management: Keep a tight control of your renovation budget. It’s a good idea to prioritize structural and necessary repairs like the foundation and roof before aesthetics, as these are crucial for the house’s longevity and appeal to buyers. As the Austin Flipsters indicated, small decisions along the renovation to cut costs wherever possible. For example, using larger tiles to save labor costs for installing.
2. Know Your Market: Understanding the local real estate market is the key to making informed decisions about which upgrades are necessary, and what buyers in the area value the most. Making the right improvements to the house will provide the biggest return on investment, and minimize spending on unnecessary upgrades that won’t add much towards your profit in the long run.
3. Repurpose Materials: Repurposing materials is a good way to save on costs. For example, painting good-quality cabinets, even if they’re old, can save you thousands compared to installing new ones.
4. Focus on High ROI Upgrades: It’s vital to focus on the upgrades that provide the highest returns. This typically includes kitchen and bathroom remodels. Ensuring that all mechanical systems (plumbing, electrical, HVAC) are in good condition is also crucial to each flipping project.
5. Professional Inspections: Before purchasing a property, invest in thorough inspections to identify any potential issues like foundation problems or outdated roofing, which can significantly impact your budget and renovation plans.
About Austin Flipsters
Austin Flipsters is made up of two old friends from college who brought house flipping into the social media spotlight. Now they have hundreds of successfully completed flips and an amassed audience of 237,000+ subscribers. The Austin Flipsters pioneered before and after house transformation entertainment on YouTube.