THE ULTIMATE GUIDE TO FLIPPING HOUSES IN SCHAUMBURG

by SARAH LEONARD

Home flippers who take the time to research and prepare a project thoroughly are on the right track to make a serious profit. It’s key to monitor housing market trends in the area and understand buyers’ interests in selling for higher than purchased. Follow this guide for a complete understanding of flipping houses in Schaumburg.

HOW TO FIND COST-EFFECTIVE SCHAUMBURG PROPERTIES

There are a few ways to find properties when flipping houses in Schaumburg. Foreclosure listings are a great place to start a search for homes at a discounted price. Auctions and short sales also offer opportunities for home flippers. Home flippers should consider partnering with a professional like a local agent to purchase the right property. Agents have access to more listings and may suggest unconventional avenues to make a great profit.

It's important not to compromise a home’s condition when searching for the lowest price. Ideally, the types of fixes a home flipper makes are solely cosmetic or small renovations like a repaint, kitchen upgrade, or bathroom upgrade. Always get a home inspection before purchasing a property to avoid properties with serious issues.

HOW TO ANALYZE DEALS

Traditionally, home flippers follow the 70% rule when determining the purchase price for a property. In other words, a home flipper should buy a property for 70% of the home’s value after repairs, minus any renovation costs. This helps home flippers avoid overspending and risking their profit.

For example, say a home flipper is flipping a Schaumburg home for an after-repair value of $314,000. Multiply $314,000 by 0.7 (or 70%) to get $219,000. If estimated repair costs are $50,000, then subtracting that figure from $219,000 leaves a home flipper with $169,000 to purchase a property. Flippers also need to factor in time and taxes when calculating profits and if the flip is worth it.

When flipping houses in Schaumburg, investors should keep their budget in mind and make smart improvements with a high return on investment. Refinish cabinets instead of replacing them, save on labor costs by DIYing small improvements and avoid costly mistakes by hiring contractors for necessary jobs. Investors should always keep their buyer pool in mind when selecting upgrades.

HOW TO FINANCE SCHAUMBURG FLIPS

The best way to finance a home flip in Schaumburg is with cash. Although this may seem daunting, an all-cash purchase means investors don’t have to worry about accruing interest fees when waiting for their home to sell. If the investment falls through, a home flipper doesn’t have to worry about being in debt, which can make starting over more difficult.

There are a few other ways to finance a home flip that investors should consider carefully before selecting. Home flippers can make a cash-out refinance that frees up home equity to use towards a home flip. Investors can also take out a HELOC loan that uses home equity as collateral. Private lenders offer hard money loans, which have short terms, high interest rates, and large down payments.

3 BEST NEIGHBORHOODS IN SCHAUMBURG FOR HOUSE FLIPPERS IN 2023

Schaumburg features a mix of luxury communities and rising communities with nearby amenities and essentials and great flipping potential. Check out these three neighborhoods when flipping houses in Schaumburg.

Downtown Schaumburg

Urban living right next to city amenities makes Downtown Schaumburg a great spot for home flippers. Homes here average $316,917 and are mostly medium-sized and small townhomes or small apartment buildings. Downtown properties are established or older, built between 1970-1999 and 1940-1969. High demand in the area is reflected in vacancy rates, which are lower than most other neighborhoods across the country.

Lexington Village

Lexington Village’s real estate was primarily built between 1970 and 1999, providing many homes for flippers that have a good structure. Real estate has a median price of $309,094 and is mostly small to medium-sized single-family homes and apartments. Lexington Village has a vacancy rate of 8.6% which ranks in the middle compared to other US neighborhoods.

Lexington Green

Next to Lexington Village is the more suburban Lexington Green, a modest community full of home-flipping opportunities. The median price for real estate is $210,000 and features mostly small to medium-sized apartments and townhomes. The neighborhood has an 8.2% vacancy rate, while most of the residential real estate is owner-occupied.

READY TO FLIP A HOUSE?

Home flippers should always complete their due diligence before investing in a property by researching market conditions, searching for the right neighborhood, and planning cost-effective renovations. Partnering with a local professional is the best way to stay on track and avoid mistakes. When you’re ready to flip houses in Schaumburg, contact one of the agents on the Sarah Leonard Team for the best chance of a high profit.

_{*Header image courtesy of Sarah Leonard Team}

GET MORE INFORMATION

Sarah Leonard

Broker | Owner

sarah@sarahleonardsells.com

+1(224) 239-3966