You’ve probably heard of house flipping. It’s what you call it when you buy a house, make some improvements, and then put it back on the market to sell for a profit. House flipping has been around for a while now, it first gained popularity in the 80s.
There was a recession in the 80s and many homes were foreclosed. People would buy these homes, do some work on them, and then resell them when the market recovered. In the 90s, the popularity of flipping fell away.
The concept of flipping may have been around for 40 years, but there have been some key changes in the 2000s. These days, most people know what flipping is thanks to reality TV, and it’s more popular than ever. Because this new popularity has come at a time when people are more concerned about the environment, eco-flipping is on the rise.
What Is Eco-Flipping?
Eco-flipping is just house flipping, but with an eco-friendly twist. The improvements made on eco-flipped homes aim to increase energy efficiency. The goal is to increase the number of eco-friendly homes on the market, which is great for the environment.
It’s also great for the bank account of the person eco-flipping the home. Traditional flipped houses usually bring a profit of $20,000 to $30,000. Eco-flipper companies are reporting that they’re increasing their profits by up to 50%.
With those numbers, it’s not surprising that many people believe eco-flipping is the next big thing in housing.
What Goes Into An Eco-Flipper?
So what improvements go into a home when it’s eco-flipped? Here are a few of the most common improvements.
Not surprisingly, appliances that conserve energy are high on the list. Eco-flippers install energy-star-rated appliances such as dishwashers, clothes washers, dryers, refrigerators, and stoves. These appliances use 10% to 50% less energy and typically save a homeowner over $100 a year in electricity costs alone.
It may not be the most exciting upgrade, but insulation also comes in high on the list. Good insulation can lower a home’s heating and air costs by 40%, prevent sickness, and lower energy use. Lower energy use leads to less greenhouse gas emissions, which makes this improvement especially green.
Wool, denim, and ThermaCork are all eco-friendly options that can be used to replace traditional insulation.
Alternative Power Sources
Alternative power sources, also known as clean energy or renewable energy, are often used to power eco-flipped homes. Common alternatives to traditional power include solar power, wind power, and hydropower. Switching a home to one of these sources lowers its environmental impact and energy bills.
How Can You Get Started?
The process of eco-flipping is actually simple, so let’s break it down into its steps so you can start right away.
First, you choose a type of home that sells well in your area. Look at recent sales trends to pick the right type. Then for the second step, you choose a specific home you want to buy.
For the third step, you obtain a fix and flip loan to purchase the house. After that, you just have to do your eco-upgrades and get it back out on the market.
If you find a good realtor, the property should be gone in no time. Many eco-flipped homes sell in under a month, so you won’t have to deal with the stress of a long wait. Once the property sells you can take your profit and run, or put it into a new eco-flip project. The possibilities are limitless.
What Else Should You Be Aware Of?
Concerns about how climate change will affect real estate property are on the rise. With coastal states facing rising sea levels, and wildfires becoming more prevalent, the worry is understandable.
Eco-flipped homes can help with this issue, as they allow people to live more sustainably and lessen their contributions to climate change. As an eco-flipper, you should be aware of this as a potential selling point when listing your homes.
You should also carefully research the areas you’re planning to buy in, to ensure you won’t face any climate-based surprises.
Now that you know the basics of eco-friendly house flipping, you’re ready to take the first step and become a professional eco-flipper.