Should I flip my property, or will it become one big flop?
Updated: May 25, 2018
House flipping has become ever so popular in todays property market. But with todays rush to make a profit, far to many investors overlook the basics and their property flip career becomes a one huge flop.
What is house flipping? Basically you buy a property, make renovations and then you quickly re sell the property which should have increased in value if done correctly.
So how do you avoid making a mistake.
Not Enough Cash Flow – Property is an expensive game, finding below market deals is easier said than done. There are many costs to factor in when purchasing a property. The acquisition cost, renovation cost, bills whilst owning the property and don’t forget about tax - it will all chip away at your profit.
Time – Renovating and flipping property is time consuming. Finding the property, buying the property, renovating the property and selling the property. It all needs a lot of time and commitment.
Skills- Often tradesman flip properties as they have the professional skills and knowledge. If you are not handy with a hammer then don’t try to be. Employ professionals to get the job done cost effectively and efficiently.
Very Little Knowledge – To be successful you need to pick the right property, in the right location at the right price. The market can be a mean place at times, get some things wrong and your property investment could turn into a money pit.
Not Enough Patience – Take your time and wait for the right property. New investors rush out and become bulls in china shops. Be patient, calm and do your research.
My advice to any one who wants to property flip-
It requires time, money, patience and skill. It will end up becoming more difficult than you think.
But by doing your research, growing your knowledge and taking good advice. Your property career could be flipping great rather than one big flop!