How to ensure your property is a diamond not a dud

With reality television shows and famous celebrities highlighting the rewards of “flipping” property, more and more Canadian investors are on the hunt for these diamonds in the rough. Although theoretically the buy-fix-flip strategy is one that appears to provide the greatest returns in the shortest period of time, there are many factors that a landlord needs to consider before jumping in.
 
Even the smallest of oversights in this strategy can turn a project from a $50,000 profit into a $50,000 hole. When evaluating a profit, there are a number of factors that should be considered from purchase price to cost of repairs. Such an analysis will help you determine whether you have uncovered a diamond or a dud.
 
1. What are you buying?

You will need to determine what level of work you want to be involved in. A flip can be as simple as buying a house that needs new carpets and a fresh coat of paint, and can be as complex as a home that needs to be stripped to the studs and reconfigured.
 
Questions to ask:
1. How much time do you have to dedicate to the project?
2. Who will do the work (you, your bother, contractor, etc.)?
3. What type of property do you want (single-family, multi-family)?
4. Is there a demand for a specific type of property in your market?
5. What is the minimum amount you need to net from a project?
 
When you know what it is you are looking for, you will be viewing potential properties with laser focus and will be able to quickly turn away from the property that will take you off your track.
 
2. Understand the market

When looking for a fix-and-flip property, it is critical for an investor to understand their market inside and out. This property is one that you intend on flipping in a short period of time for a profit so there are a few key factors to consider before you make the buy.


read more > 1 2 3

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Investment Hot Spots:
Bristol, Richibucto-Village, King's Point, Huntingdon, Hornepayne

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?