23 – Use Common Materials for Your Flips

  1. This works best for investors who buy properties in targeted communities:
    1. Similar houses in similar neighborhoods require similar materials.
    2. When starting out, try to buy in the same area.
    3. Helps reduce the learning curve of the neighborhoods.
    4. It’s easier to estimate costs in targeted communities.
  1. Whether you are flipping high-end or low-end properties, neutral colors are usually the best:
    1. Picking the same color patterns in each investment property will allow you to save time.
    2. You will not have to communicate color needs with your contractor for each property.
  1. Materials such as light fixtures, hardware for doors, and kitchen pulls can and should remain the same in your flips:
    1. These materials are important, but should not be expensive.
  1. Other materials such as bathroom fixtures and kitchen fixtures may vary depending on the neighborhoods.
    1. Targeted areas will allow you to pre-determine the materials that you will use in every flip in that area.
    2. It is usually not a good idea to spend considerably more on materials just because the budget allows it. If the neighborhood doesn’t dictate those materials, don’t spend the money.
  1. It boils down to preference and profits.
    1. The goal is to make a profit.
    2. Always remember that you will not be living in this property.
    3. Always use materials that are at or above what is expected in that market.
    4. Going too far above will result in wasted money and smaller profits at the end of the deal.

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