The television shows make it all seem so easy and magical: a young couple purchases a home that is in need of repairs and/or renovations, we watch them go through the process with seemingly minimal or no setbacks, and they they sell the home for a huge profit. If only real life mimicked these reality shows!
Everyday, consumers purchase homes with a visions of profiting from their renovations, but reality is that few will ever see a profit, much less completion of the project. If you’re in the Kansas City area and you’ve gotten into a fixer-upper house with seemingly endless projects that you need to get off your hands, contact Cash 4 Kansas Homes! We buy houses in any condition and can relieve your burden. Check out these common reasons people find themselves needing to get out from under their house flipping projects.
How you finance your undertaking will be the backbone of determining your overall budget on a house flipping venture. Some investors have no problems getting the initial financing necessary to purchase a home in need of repairs, however, the longer the repair process goes on, the more expensive your project can become. Some may be tempted to take out additional financing to complete their house flipping venture only to be turned down by the bank or other lending institution because of the financial risk it poses. If you are approved for an additional loan, you then run the risk of being upside-down on your investment, which is never optimal. Whether you bought your investment property in cash or funded it with one or more loans, running short on capital for your project or owing more than the possible profit are a few apparent signs that it may be time to abandon your project.
Discovered Substantial Damage
One of the dangers in buying a home that needs work is the potential for hidden repair concerns. If you’ve undertaken a major renovation project that involves removing structural components like flooring and drywall, the chances are high that you’ll come across some unexpected circumstance or form of damage. Generally speaking, the older the home, the higher the chances are that you’ll discover something like mold, asbestos, lead paint, or antiquated building methods that have the potential of substantially impacting your budget. Nothing is more daunting than pulling out a shower pan and seeing telltale black spots on the framing, or pulling back flooring to see the substrate beneath is rotted through. Even worse, imagine discovering a crack in the foundation of your investment property that compromises the home’s structural integrity. Some of these unforeseen findings are enough to make would-be flippers throw in the towel if their budget will not allow for proper remediation.
Injury or Change in Health
It may not be something that many people think about, but each year, hundred of thousands of people are injured in the course of completing house flipping ventures. This is easy to understand — it’s much more desirable to think about sleek new appliances and open floor plans than it is safety measures. However, there are seemingly endless ways that you can injure yourself while completing renovations in a construction zone, especially if you aren’t a skilled contractor. From using power tools and climbing ladders to handling exposed electrical wire, house flipping can be a risky business. In addition to those injured during the process, others may suffer health problems unrelated to the renovation that cause them to hang up their toolbelt. When you’re renovating, one thing is certain: it takes a substantial amount of hard labor to complete a project! An unexpected injury or health condition has the potential to stop your undertaking in its tracks.
At Cash 4 Kansas Homes, we understand that house flipping is not always as glamorous as the television shows make it out to be. As we’ve reviewed, there are many things that can spell disaster for your project. If you feel like you’ve bitten off more than you can chew financially, or you’re unable to finish the renovations you’ve started on your investment property, contact Cash 4 Kansas Homes to sell your home! We’ll buy your house for cash in any condition and close quickly, all the while treating your individual situation with compassion and professionalism. Contact us today!