In my last blog I was referring to Flipping properties and said how Flipping Properties was the buying and selling of a property without actually having to ‘own’ the property because it has been sold on to another buyer.
But let’s look at Renovating and Flipping a property
The process of find the right property to buy, renovate and flip can be made as difficult as you like, but in truth the process can be made quite simple. The idea of renovating and flipping is to make money from the renovation, so that means that you want to put it back on the market as soon as the renovation is done.
Apart from the actual building itself in terms of something solid to work with, there are .. other points that can simplify the process.
- find the worst house in the best street
- buy the property at a very good price as you won’t be waiting for the market to move before you sell
- decide who your target market is so that your renovation will be planned to suit a particular buyer
- what income bracket will the buyer be in as this will indicate at what level of fittings and decor style should be implemented
- check that there is not an excess of houses like that selling in the area
Once you have decided on the above attributes you most likely will find the ideal house to renovate.
Do the sums and check that the buying price, plus costs, plus the renovation costs will allow for a profit when compared to other houses for sale in the same area.
Another tip that may help is to have a longer settlement so that you can get your planning and ordering done, ready to renovate the day you settle.
Don’t forget to get any property investments put into a Depreciation Schedule so that you get maximum tax benefits. Contact Tracey Lunnis at TSL Project Services