The real estate market in Etobicoke may show signs of slowing down but that is primarily due to government intervention, with interest rates slightly higher and foreigner buyers having restricted access the upward pressure on housing has reduced somewhat. This is a great time to start buying houses to flip for a profit when the market experiences a resurgence. In order to maximize profits you need to purchase property that requires a moderate amount of rehabilitation before you can sell it for a profit.
Strategies to Use when Flipping Houses
One of the most important things you will need to do when flipping houses is to hire qualified trades for specific work that is regulated by law. Take plumbing for example, if you hired a journeyman plumber they may be able to do the job but you are playing with fire to save a few bucks. Hire a licensed Etobicoke plumber that has all of the necessary credentials to legally do the job. While the Etobicoke plumber may charge you a higher hourly rate you may be able to negotiate a better deal if you have multiple houses for him/her to work on. The same rule will apply when doing electrical work around the house, you need to insist on using a licensed electrician or the property may not be in compliance.
Aside from the licensed trades you can hire freelancing carpenters and students to do the bulk of the restoration work in the home. Start by revamping the bathroom, which is usually in dire need of an update. When prospective buyers visit the home one of the first places they are going to inspect is the bathroom and if it looks dated the prospective buyer may lower their bid or lose interest in making an offer. While some contractors may quote you a high fee to renovate a bathroom you can get it done for less than a couple of thousand depending on what fixtures you install. One way to save money on the renovation is to visit your local hardware store and find out whether they have discontinued product lines available. If the hardware store has these discontinued lines you may be able to get them at a discounted price which helps you save money.
The next area of the home that will require attention is the kitchen and it is by far the most important area of the home to renovate. Your prospective buyers are going to spend a considerable amount of time inside the kitchen so it needs to be functional, spacious, and comfortable. If this is not your area of expertise you could reach out to an interior design student who is eager to make money and has a host of creative ideas. By leveraging the raw power of young people you can use their inspiration to make a really great looking kitchen at bargain basement prices.
By keeping your renovation costs low the odds of you flipping the property for a profit increase dramatically but the challenge is having a thick enough skin to ask for a better deal when buying materials and hiring people.