When it comes to home flipping, success lies in finding the right balance between acquisition costs, rehabilitation expenses, and the timeline to market. For homeowners and investors in Southeastern Virginia, particularly Hampton Roads, understanding the formula for a successful flip can make all the difference. At Bluewater Building Company, we’ve mastered the art of home flipping with a strategy that maximizes profit while maintaining high-quality workmanship. Here’s a behind-the-scenes look at how we recently turned a home in Hampton, Virginia into a profitable investment, and how you can do the same.
1. Low Acquisition Cost: The Foundation of a Profitable Flip
The first step to a successful home flip is acquiring a property at the right price. Working with our trusted Realtor® partners, we identified a house in Hampton that had great potential but needed some TLC. We were able to purchase the home at a favorable price that was attractive to the seller while also leaving room for us to renovate and still achieve our target profit margin.
Acquiring a property at a low cost is essential because it sets the foundation for the entire flipping process. It’s about more than just getting a good deal—it’s about ensuring that the purchase price leaves enough room for renovations and unexpected costs while still allowing for a 20%+ profit margin.
2. Quick and Affordable Value-Add Rehab: Making the Most of the Budget
Once the purchase was complete, our team at Bluewater Building Company got to work on a quick and affordable renovation. Our strategy was to add as much value to the home as possible within a limited budget and a tight timeframe. Here’s how we did it:
Roof Replacement: We started by installing a new, GAF HDZ roofing system, which not only boosted the home’s curb appeal but also added to its value with a warranty-backed roof. As a GAF Certified contractor, we ensured the roof was installed with the highest quality standards, making the home more appealing to potential buyers.
Kitchen Updates: The kitchen is often a deciding factor for homebuyers, so we made sure to focus on modernizing this space. We updated the cabinets, added new countertops, and replaced outdated appliances to create a fresh and inviting atmosphere.
Fresh Paint and Finishing Touches: To tie everything together, we gave the entire house a fresh coat of paint and added finishing touches throughout, including new light fixtures and hardware.
The entire rehab took less than 30 days, allowing us to keep costs down and quickly get the house back on the market.
3. Sell for Acquisition Cost + Rehab + 20%+ Profit Margin: Achieving the Ideal Flip
With the renovations complete, we listed the home in Hampton, marketing its new roof, updated kitchen, and modern aesthetic as key selling points. Thanks to our efforts, the property went under contract under 30 days of hitting the market and closed within 60 days from the start of the rehab.
By keeping the rehab timeline under 30 days and leveraging our expertise in high-quality construction, we were able to maximize the home’s appeal and bring in multiple offers quickly. The final sale price allowed us to net $50,000 in profit after all expenses, proving that with the right approach, a home flip can indeed be done right.
Key Takeaways for a Successful Flip in Hampton Roads
The Hampton flip was a textbook example of how to navigate the three key elements of a successful home flip:
- Low Acquisition Cost: Secure a property at a price that leaves room for rehab and profit.
- Quick, Value-Add Renovations: Focus on high-impact updates like roofing, kitchen upgrades, and cosmetic improvements to add value without breaking the budget.
- Sell for Acquisition + Rehab + 20% Profit Margin: Aim for a sale price that covers your total investment plus a minimum of 20% profit.
Bluewater Building Company’s experience in home rehabilitation and flipping projects throughout Hampton Roads has given us a unique perspective on balancing costs and timelines for maximum returns. Our 20+ years of expertise as a Class A contractor and Residential Home Builder have enabled us to deliver exceptional results for homeowners and investors alike.
