NASHVILLE, Tenn. (WKRN) — Television shows focused on flipping houses are numerous these days. They inspire many to pursue the profession. But, is it as easy as it looks?
Nashville’s astronomical real estate rise has certainly given flippers prime opportunities. Take Kortney Wilson as a perfect example. She’s a real estate agent, a house flipper and hosts HGTV’s “Masters of Flip” and “Music City Fix.”
Wilson was an aspiring musician and made the move to Music City from Canada 20 years ago.
“Much like people know about the music industry, it’s feast or famine, so I invested in a house in East Nashville,” Wilson said. “During the time where I was eating beans and rice, I was trying to support my family so I decided to flip a house.”
Transformed from a neglected property to a dream home, Wilson has been hooked ever since.
“It was such a beautiful city. It was a metropolis,” Wilson added, “But the properties you could still snag under $100,000 – we are talking ten years ago. Those same properties have obviously gone through the roof.”
The Nashville market has grown more competitive.
“I do think it’s harder these days to get into the market with the construction prices. The way they are, as high as they are, it makes the number crunching a little tougher,” said Wilson. But, not impossible.
“It’s all for the faint of heart, but it’s also not rocket science,” she said. “Find a small rental home that needs a little bit of lipstick, a house that maybe we are not adding onto, or it isn’t going to be a crazy mess structurally.”
Other top tips include having a detailed plan, finding a mentor, stick to a budget on every project and look for groups of investors to form relationships with. Areas like East Nashville have already been taken over. What’s the best way to find the next up and coming neighborhood?
“You follow the artists,” Wilson said. “I have always followed where the artists go. When I first moved to Nashville, the singers, songwriters, and visual artists were all going to East Nashville.”
Her biggest piece of advice to aspiring home flippers is to expect the unexpected. “I have flipped over 150 houses, and there still has to be a contingency plan,” said Wilson. “There’s always something where I’m like ‘oh my gosh, I never thought I would go over that much’ or never expected to find out there is no foundation at the house at all.'”
According to Zillow, despite the COVID-19 pandemic, home prices will continue to increase. The average return on investment is anywhere from 6% to 7% over the next 12 months.
One final tip: when flipping a home, focus more on designing the backyard or outdoor space. If the pandemic has taught us anything, it’s people like to spend more time relaxing and entertaining at home.