Flip Renovation Planning

[John Smith]

Newbie flipper here just have a quick question. Looking to get into flipping this year, I’ve gather a good understanding on the whole process. My only real question is how does one go about playing what renovations should be done to the property? Are we just seeing what is popular in the area off comps? Should we use realtors to help with this? Or interior designers?

[Evan Polaski]

@John Smith I would put this in the "knowing your market" bucket.  Comps are a great starting point.  What sold immediately, and what sat?  What went for well over asking?  etc.

A designer is not needed, but a poorly designed house in most markets will sit.  New cabinets alone don't necessarily make you money.  But again, know your market.  My wife is a designer and we flip in areas (not high end) where unique design sells for premium to other "standard flips".  We also did a flip in a neighborhood that was much more budget conscious, so her design did not get the premium we hoped for (thankfully, we still made money).

If you do not want to do the research or trust yourself in finish selection, there is no harm in hiring a designer to help, as long as you budget for it.  My wife works with 3 flippers that pay her to do all the design work for them.  They set the budget and she gives them a full packet of notes to hand off to contractors and lists of where to buy everything.  She charges several thousand dollars for this, but to these flippers that cost frees them up to find more deals.

Of course, as Bob mentions, you don't NEED to hire a designer and many flippers do well just picking finishes and working floor plans themselves.