FIX IT, FLIP IT!

   Over the years I’ve seen people have great success flipping houses, but not without peril. So, I thought I’d share my observance for those of you considering buying a property to fix up and re-sell. 
   The first thing to do before considering buying a house to flip is to check out the neighbourhood, and if it is in decline, stay away. The ideal situation is to buy the cheapest home possible in an up-and-coming community. Now, it’s well known that buyers don’t like to pay for what they can’t see. It is hard to get a good return on plumbing, wire, or insulation etc, so it’s best to start with what we call “good bones”. Cleanliness is the best start, and then I recommend addressing windows and light. Just opening up a home and making it bright and clean does wonders. Don’t forget, kitchens and bathrooms sell homes so include room in your budget to get those rooms up to par with today’s style and functionality. Closets and flooring are also important, so address refinishing hardwood or installing new floors altogether, and add storage space if necessary. Let’s not forget curb appeal! I can’t count the number of times people refuse to go into fabulous homes because the outside looked a little shabby. Painting shutters and landscaping are little things that can go a long way.
   Consider also your method of purchase, as they are two ways to go about a property that you plan to fix up and flip, residential or commercial. Purchasing as a residence is easier to finance and insure and the profit you make is tax-free. Keep in mind that living in a house while you are renovating it can cause a great deal of disarray and stress. Talk to people who have done it first to get some tips on how they made it work for them and their family!
Renovating as a job is difficult to insure, and the cost involved with the time associated can become high. The longer the renovation, the higher the cost, and the narrower the margin. 
   Doing all the work yourself is ideal, but if you cannot  do this, line up your trades well in advance. Lot’s of times the whole job stops because of one service being unavailable. Also, prior to closing, check with City Hall about permits and if your renovations are acceptable. 
   These are just a few tips to get you started if you’re thinking about fixing and flipping a property! There is no substitute for doing your homework; talk to everyone you can about your project and get as many tips as you can from friends, neighbours or even your mailman! Good luck with your renovation project!

Harold Pope

Harold Pope

Sales Representative
CENTURY 21 New Age Realty Inc., Brokerage*
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