The housing market in the greater Fairfax region is hot and, with the expected increase in foreclosures and short sales, the market for house flipping promises to be strong. In fact, according to one source, Fairfax home prices were up 10 percent in December 2021 compared to the same month in 2020.
And a press release from Business Wire noted that,
“Less frenetic but still fast-paced is the prediction for the 2022 housing market in Northern Virginia which echoes national expectations, according to the Northern Virginia Association of Realtors® (NVAR) in its annual forecast produced in conjunction with George Mason University’s Center for Regional Analysis.”
Which means more great opportunities for flipping houses.
So, what is “house flipping” exactly?
House flipping usually refers to the process of buyers purchasing distressed properties – houses on the brink of foreclosure or already owned by the bank – then fixing them up and hoping to resell them for a profit.
House flippers typically find these properties via foreclosures, bank short sales, or property auctions.
Because little more than available capital and a willingness to take risks are all that’s needed to get into the game, House flipping appeals to many who are not a realtor or real estate professionals. However, there are still a few things that people who are just starting out with flipping houses should know.
For example, experts agree that to be successful in flipping houses, you must spend your money wisely and invest in undervalued properties. However, these are usually the properties that require quite a bit of work, including junk removal.
In addition, there are several other essential tasks that are needed to be successful at the house flipping business.
Here are seven steps adapted from information found at the Rocket Mortgage® website:
- Know Your Neighborhood
You need to spend some time researching the real estate market and choosing the right location to invest in. It’s a good idea to work with a real estate agent who can advise you throughout this process.
- Use The 70% Rule to Plan Your Budget
This rule states that an investor should only pay 70% of the after-repair value (ARV) of a property minus the necessary repairs. The ARV is what the home is worth after it has been fully renovated.
- Assess Your Skill Set
Knowledge of construction, real estate, and design are good skills to have. It’s okay if you don’t have those skill sets yourself, but that means you need to know how to find the professionals who do.
- Finance Your Project
The next step is to figure out how you’ll finance your project. If you don’t have cash on hand to put toward the project, then you’ll want to get preapproved for a loan.
- Decide on And Buy Your House
Foreclosed, distressed, and fixer-upper homes are all good options to consider. But you’ll want to use a real estate agent and contractor to help you understand the extent of the work that needs to be done.
- Build Sweat Equity
Many entrepreneurs find that in the beginning, sweat equity is a necessary aspect of building a successful business. It’s what gives them the resources they need to keep the momentum to keep going.
- Flip the House
Once the repairs are complete, it’s time to resell the house. It’s best to with a real estate agent to help you list the house as they can list the house in the Multiple Listing Service (MLS) database.
Another great tip is to use a professional firm for all the junk removal that will be needed during your house flipping endeavor. Expert real estate clean out services are often required even before you make one repair or upgrade to a distressed property.
While the term refers to the financial state of the mortgage, a prospective house flipper might find themselves to be a bit distressed at the prospect of cleaning out all the debris, trash, and junk often found in a distressed property!
In addition, the small junk and assorted rubbish that is commonly left in vacated properties, you may also encounter old furniture that has been left behind as well as other larger items. The need for appliance disposal, for example, is not at all uncommon when cleaning out houses that have been hastily vacated, such as in a foreclosure situation.
And that’s just the junk removal services you need before you get started on your improvements for your real estate investment!
Depending on the extent of your repairs and upgrades, it is quite likely that you will need the services of professional construction debris removal, as well. House flippers may have the skills and tools to do their own work on the structure – investing “sweat equity” into their purchase. But, if not, they will contract it out to those who do.
The same holds true for junk removal. If you have a truck and experience dealing with junk loading, hauling, and disposal, then you could conceivably do it yourself.
Except you shouldn’t have to. Remember, with house flipping, time is of the essence, and wasting your time with junk removal and disposal is not cost-effective.
This is why Junk King Fairfax specializes in estate clean out services and construction debris removal.
House Flipping and Staging Your Junk
Having said this, we understand that there are times and situations where it does make sense to have a place to put all the debris, trash, rubbish, junk, and other items while working on a project. And piling it all in the driveway or the attached garage is never really a good idea.
But there are alternatives.
One of those is that folding, fabric “dumpster” bag known as a Bagster® bag that you can buy, fill up, and then have hauled away. There are a few major disadvantages to this option, however. The bag only holds three cubic yards of waste, which is less than a pickup truck load. And there’s a weight limit, but no way to know how heavy your load actually is.
In addition, there are strict limits when it comes to picking up your loaded bag, too. It must be at least five feet from any structures, fences, trees, vehicles, or other objects and at least 18 feet of vertical clearance around and above the bag.
At Junk King Fairfax, we’ve got a better idea.
Why bother with a few cubic yards of holding capacity when you can have a user-friendly, easy-to-access MINI Dumpster from Junk King that will manage up to 12 cubic yards of junk?
And, unlike most industrial dumpster bins, our MINI Dumpster is driveway-safe because of its specially designed polymer wheels. That means it can be placed on your driveway, on the street next to your curb, or in your RV parking pad next to the house. In fact, you can have it placed anywhere without fear of damaging concrete or asphalt.
Another great thing about our dumpster rental container is that it’s only four feet high, which makes it easy to load from the sides. However, it has double doors on the end for complete access, and because it’s only eight feet wide and eleven feet long, it only takes up as much space on the ground as a full-size pickup truck.
The bottom line here is that when it comes to the junk removal and construction debris removal tasks during your house flipping project, you have a few great options from an expert service provider – Junk King Fairfax.
Saving money is critical when you’re flipping houses, and Junk King Fairfax is ready to help you do just that with your junk removal needs here in the greater Fairfax region. Whether you’re flipping houses in places like Herndon, Silver Spring, Ashburn, Bethesda, Manassas, or Woodbridge, we are ready to help.
And if you need to take two or three days to pile up your junk and debris, your best option is self-service junk removal with a MINI Dumpster from Junk King Fairfax.
Our experienced full-service junk removal team will carefully remove and haul off any types of junk you have. And our big, red trucks are made to handle any of your large junk items.
Our professional and insured junk removal team will show up at your new property on time, and we’ll call 15 to 30 minutes before we arrive to let you know we’re on our way. Once we show up at your house, we’ll give you a free estimate based on how much room your junk takes up in our truck or MINI Dumpster.
So, ready to get rid of your House flipping junk and debris? It’s as simple as 1, 2, 3.
Just make an appointment by booking online above or calling us at 1.888.888.JUNK (5865).