Edmonton house flipping has slowed in the past few years, but this isn’t representative of the real estate market. Even in low-growth periods, house flipping can be profitable, but only if you do it right. Here are three tips to help select and renovate your next property for a more profitable flip.
1. Start At The Neighbourhood
Attempting to flip a $500,000 home in an area that feasibly sells for around $500,000 means you are unlikely to make a significant profit when house flipping. The best place to start when looking for a house to flip is to look at what homes in the area are selling for. The home you pick should be less than that number by a healthy margin to help you maximize your profits. Remember, even if you get a fixer-upper, your work will drive up the price as well, so don’t be scared of a property that needs some work if the price is right.
2. Find The Right Contractors
Skilled labour in Edmonton is expensive, even in this economy. Things are only going to be getting more expensive as well, so now is a great time to buy and hold onto a property. When looking for contractors, always get multiple estimates on the work you want done. Compare those costs against the quality of their work and turnaround times. Remember, a more expensive contractor can sometimes be worth the difference in price if their work is stellar and they keep things very professional. While handymen can be much, much cheaper, the costs involved of not hiring the right trade for the work can be substantial, especially when the home inspectors come around.
3. Be Reasonable With What Needs Done
While many of us would like to completely revamp an entire property from top to bottom, not all renovations pay back equally. Thoroughly inspect the property before you buy, making notes of everything that needs to be done to make a proper house flip. Looking for cosmetic problems is great as well, such as dated kitchens, because you can upgrade appliances and countertops for relatively little money compared to what you can make in the flip.
House flipping in Edmonton can be difficult right now, not just because of the high costs of skilled labourers, but because of the market’s instability. But even in a low-growth area like Edmonton, there’s still money to be made in house flipping. The trick is finding a great property with lots of potential, and putting in the necessary changes to make the home look its best for the market.