The first thing that you have to understand about property flipping is what it is and how it is different from simply investing. If you invest in property, you might buy and then rent to tenants. If you flip it, you are buying it and then selling it on to another potential buyer. The key difference here is that in the latter situation you won’t be taking on the responsibility of becoming a landlord. However, there is a disadvantage to not letting a property once you buy it. You become reliant on the fact that you can make a quick sale. Otherwise, the empty, unused building will constantly cut into your finances. This is why, we recommend combining the two ideas to make the perfect business venture. You gain the advantages of letting the property while also claiming the lucrative winnings of flipping one. Here’s how to do it.
Buy Your Property
Look for a property with all the basics. You want it to be in a good area with proper security and be careful not to buy a building that is ancient. These tend to have hidden problems that will cause you headaches in the future. Before you purchase you need to think about who your tenants are and for this example, we are going to suggest you cater to students. So, now you are looking for a block of flats or a couple houses in the city. Once you find them, bring the asking price down to the floor. This will involve patience and haggling but if you researched the market you will be able to reach your goal price.
Cut Costs Straight Away
Remember, you are going to be renting out the property but you want to keep costs low. You will need basic things like insurance, but you do not have to pay a fortune for this. If you compare landlord insurance deals online, you can find the quote that is the best value for money from this right company. Then you will need to think about improving the property.
Making Your Budget Property Valuable
This is the first stage of flipping property. You design and style property in a way that makes the perceived value rise. You do not actually spend a lot of money making the property more valuable because you don’t need to. By buying the right accessories and using space appropriately, you can make the property seem better and bigger than it is. You will then be able to ask for a higher price when renting. By doing this, you will achieve the profits of flipping without taking on any of the added risks. Catering specifically to students is a particularly good idea. They are always looking for accommodation, so there is a massive demand here. The only thing to remember is that typically you will not be receiving as much rent in the summer months.
One last tip is to make sure you know the responsibilities of the landlord. But, if you took our advice and found the best insurance deal, you will have no problem dealing with any issues that may arise.
