One of the most popular side hustles is looking to the world of real estate. For a decade or more there has been an explosion of reality TV shows demonstrating just how easy it is to buy a property, renovate it, relist it, and sell it within three months making a tidy profit in the process. If it was really so simple wouldn’t everyone do it? To give this sort of venture a go, you need the funding ready to purchase a second home as well as the time to dedicate to a renovation project while still being committed to a full time job. Take a look at this guide that will help you decide whether you could master the art of flipping property.
Know Where To Look
The location of your property purchase is vital. You want to find an area that has not reached its full potential yet, but you also don’t want to take the plunge in a region that has been described as up and coming for a decade or more. This is the time to check the property forecast history and choose an area where the prices of property have been increasing for the past three years. This way you can be relatively sure that your bricks and mortar will rise in price while you are attempting to flip it.
Go for an area that is popular with your target market. Don’t purchase a family home in the center of a city; instead, opt for the more pleasant suburbs. Don’t buy a party pad in the middle of nowhere and instead go for that central location to appeal to young professionals. Steer clear of crime hotspots and don’t forget to look at local school results as these can increase the property values in certain areas.
Never go over your budget. You must ensure that all of your financial ducks are lined up in a row and that you can afford the second mortgage that you will inevitably take out, even though it is just for a short time. List every project that needs doing for your renovation from fixing the leaky bathroom taps to extending into the loft area to create a new master bedroom suite. By being thorough, you can keep a close eye on your spending. Add in a ten percent contingency for unforeseen issues and spend wisely. Look for ex-display models of kitchens, trade paint and carpet offcuts to help cut your costs without cutting the quality of your finish.
Listing The Finished Article
When you have completed your renovation, you need to list your property. Head to a reputable firm like William Pitt Sotheby’s Realty to ensure that you achieve the maximum sales price in the fastest time. Going with a company with exceptional reviews and a good reputation is vital if you want to appear professional. Don’t list your property at a ridiculously high asking price as you won’t even get buyers walking through the door. Be sensible and list at a tempting price to ensure you sell quickly.
Renovating a property isn’t as easy as it seems, but with organization, sound budgeting, an eye for interior design and a little bit of luck you may find flipping property is flipping profitable.