Well, the good news is that yours doesn’t even have to look like that. So much of that is just reality TV “eye candy,” but the non-TV reality is that you really just need to make sure the house is structurally sound and all the key elements — electrical, plumbing, floors, walls, etc. — are taken care of. Of course, it should look nice, but being “Instagram-ready” isn’t necessary. Plus, if you try too hard to decorate it in a certain style, it might actually turn buyers away and hurt your bottom line. Another false impression that TV gives is how long renovations take. Not only can unexpected problems come up (and they almost always do), but you also must factor in permit approval, inspections, your contractor’s and laborer’s schedules, the time it takes to get customized features made and shipped, and more. This is why it’s important to hire a good contractor — they can tell you what a realistic schedule should look like for your particular property. Just remember that contractors aren’t psychics. There are often issues that don’t show up, even with the most diligent pre- purchase inspections. You can’t tell what’s hiding in the walls. There could be a leak you won’t know about until it rains. There can also be problems with shoddy or unreliable subcontractors or annoyed neighbors who, at best, complain directly to you and, at worst, file complaints with the city. Related to the length of time a renovation takes is the amount of money it costs to hold the property. The longer the time, the more money it costs. This includes interest on any loans, insurance, and, if you have the property for over a year, long-term capital gains taxes. The latter can be up to 20%, which would obviously eat a huge chunk of any potential profits (or might even mean you losing money). House flipping is not for the faint of heart, but for those willing to do the hard work and deal with the stress, it can pay off
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