Thinking About Flipping A House? Think Carefully!
Thinking about flipping a house? Do you know what you are getting into? For some, house flipping, is a full time job. It takes planning, contingency planning, determination and some luck. You need to find the right property at the right time. You need to have all your work complete in a timely manner.
Here are some things to consider before committing to flipping houses
Costs Aren’t Fixed
Flipping a house is expensive. Budget shrewdly. Just because you started your project in January doesn’t mean lumber will cost the same in June when you need it. Prices vary, for all sorts of reasons, make sure you plan sufficient contingencies.
Canada’s tax laws are always changing. Now you have to disclose all real estate transactions. If you are thinking of doing this as a “side project” think very very carefully. Speak to an accountant.
Purchase Price Is Key
This should be a business decision. Remove all emotion when flipping a house. Paying even just a few thousand more can make a huge difference in the end.
Location, Location, Location
Among many things location will dictate is the value of the home post reno. If you get a great deal in the worst part of town the ultimate value will still be low.
Teamwork Makes The Dream Work
Surround yourself with professionals who you can trust. Trust that they know their business and will deliver you the result you want. If your realtor says its a bad buy trust them. If your framer says it is too much work, trust them. A great team effort will help you through.
Jeremy Odland & Stewart Blair are award winning Realtors in London, Ontario. Learn more about them: About Us
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