Flipping that first property

Flipping homes in Toronto and across the rest of Canada is currently derigeur. With the increase in property prices and the spike in the number of reality television shows glamorizing house flipping, it is no wonder that people are tempted to try their hand at making what looks like “easy money.” The truth is a lot more complicated and much tougher than what it would seem to be on tv. However, if done properly, there is money to be made in property flipping.
 
Area
The first thing to keep in mind is that you need to know what you are doing – which means, research potential areas in which to flip a house. Find out what homes are going for in that area and then try to find that diamond in the rough that you can get for way under valuation – it won’t be easy, but it is possible. Just remember, that you can’t expect to buy a house in a low-income neighbourhood, renovate it to high-end standards and then expect to flip it for more than the area can handle. You have to always take into consideration what property values are worth in the area and the potential return you will make from a flip.
 
Money
So you’ve scouted neighbourhoods and found the perfect property to flip. Now you need the money. Not only do you need the funds to buy the home, but you need the money to maintain it while the work is being done and the funds to renovate it – and remember always overestimate what you will need to invest. Another crucial element is having back-up cash available if/when your own funds run-dry. Renovations will always cost more than anticipated and you have to be prepared to cover any unforeseen circumstances.
 
Expertise
Unless you have a contracting background, have always been very handy around a house or just have a burning interest in home renovations, it is good to have reliable and trusted contractors lined-up to help you execute those repairs that you can’t handle on your own. However, it is necessary to find contractors who won’t overcharge you and eat into whatever profit you might make during the resale of the residence.
 
Lifestyle
The last and most important thing to remember about flipping houses in Toronto, is that people will pay for lifestyle far quicker than they will for a finished basement or a guest bedroom. If you can sell a certain kind of lifestyle, people will be more willing to spend those extra few dollars – especially when they will be getting a perk that speaks directly to their image of the perfect life.