We have all heard of people who purchase an old house, renovate it and make a huge profit. If your looking to flip your next real estate purchase, look into the following areas:
- Location – Make sure you purchase a home in a good neighbourhood. Research areas where real estate rates are on the rise. Look for good schools in the area.
- Purchase a home in reasonably good condition – Yes you do want a bargain, but you don’t want a home that you would need to break down and rebuild. If you lack the knowledge about building structure, plumbing and electric, make sure you take someone with you when visiting the home. If you are unsure about any area, make sure you ask the homeowner or the real estate firm selling the home. If you don’t get an answer you are satisfied with, speak to someone knowledgeable.
- The fixes- Make sure the fixes are not expensive ones. For example a roof repair would cost a lot more than changes the doors. Make a list of the repairs that would need to be done and get an estimate on the cost, then add a 30% buffer.
- How far is the home from where you live- Since you will need to visit your new investment often, make sure that it is close to where you live. Renovations can take longer than what is estimated, therefore an investment closer to you, would mean that you could visit it more often and monitor it’s progress.