How to find the perfect home to flip
1. Is it structurally sound?
The first question you must as yourself is, does this property have good bones! But what does that mean you ask? Well, simply put, structurally the premises is in good conditions. If you’re not confident with checking this yourself, a professional building inspection is a worthy investment.
2. Avoid a bad layout
A poorly considered floor plan is an absolute no-no! Older homes can more often than not, have inefficient layouts that modern buyers don’t want, such as small boxed-in rooms and pools dominating a backyard. But I hear you saying walls can be removed! Correct you are, at a cost. Check that any changes you plan to make won’t affect the structural integrity of the home (in other words, can be easily and affordably updated, such as knocking down an interior wall that isn’t supporting that roof). Once again, if your not confident with checking this, get yourself a builder or engineer to provide advise!
3. Look at the lived-in spaces first
The big three you’ll want to tackle first in a flip are the kitchen, bathroom and living area. These are the rooms that will give you most bang for your buck in terms of return on investment, so your budget and time should focus here.
4. Start small
Flipping is an exciting venture, but don’t get carried away with big dreams for your first one. There’s plenty to learn during the renovation process, so work your way up to that large-scale project. Slow and steady.
5. Plan the renovation
When renovating a property for a flip and profit, it’s a good idea to set a budget fist! Research the market, obtain comparable sales of properties which fit the design and condition of the proposed renovation, set a budget and stick to it! As a general rule of thumb, stick to a budget of up to 30% of your purchase price! Be sure to stay within the limits of your spend by making practical decisions over emotional ones – overcapitalising on lavish updates will affect your overall return.
Happy Flipping!