Just about 30 or 40 years ago, finding a run-down house to fix up was relatively easy, and the return on investment was high. Most houses brought an ROI of 10 percent, and some of the larger structures brought a 20-30 percent return. As more of the flip-acceptable homes leave the market, and as more older homes are being torn down and purchased by construction companies because of the large lots, finding a flip-worthy home is becoming more difficult. Here are three ways you can flip a home without belly-flopping.
Finding a run-down house in a highly prized neighborhood is a dream come true because building locations mean everything when it comes to real estate. Doing a surface renovation project with paints and fixtures means you can turn the project around quickly, and buyers can begin fighting for the privilege of living in the ‘right’ neighborhood.
The price for renovation homes was negotiable 30 years ago, but that is no longer the case because financiers understand the newly created restoration system. Another problem with flip-style homes is the need for turning the property around because of the loans and their due dates. Steven Taylor landlord suggests you ask yourself, “Why is this a good deal?” and that may be all you need to find the answer to your question about whether the home is a good price.
The real estate market has ups and downs like a frog in a jumping contest. You never know how long the up will stay up and you don’t know where the next down will land! If you have the ability to wait out the down, and you are sure about your investment potential, you can get a good deal on your renovated property.
There is no super-secret to flipping a house except to be prepared for potential disasters and if possible, work with an expert to learn the mysteries of the profession. You can flip a house without belly-flopping, but it may take patience and skill.
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