How to work out if the property will make money to renovate and sell
It's all in the numbers and the research - its about getting maximum return for every dollar spent for minimum risk
Here are a few ways to make sure your property stacks up
Make sure there is a gap between renovated and unrenovated properties
Do your research on the area - what is the price of an unrenovated property? How much are renovated houses selling for (actual value
not on the market value) Until you know this - do not go any further. The devil is in the detail
Use the Is this property a Flip costing sheet
Remember the end goal
Flipping a property is all about getting maximum return for minimum risk. Yes that does sound too good to be true but examining the key rooms of a property for potential ways to make improvements and essentially make the property more marketable is key. Line up your key tradespeople and get them involved from the beginning. This will make sure any plans you have for the property won’t cost you a mint and are also feasible within your timeframe.
The great kitchen in any house can often influence the sale, as they say it’s the heart of the house. It’s not a bad idea to take your builder with you to house inspections to make sure your ideas are doable and will be cost effective. They’ll easily be able to tell you if that wall you want to knock out is load bearing and what’s in good enough shape to be re-used.
Painting and refinishing cupboards and bench tops is going to be much more cost effective than replacing them.
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