Property Investment Strategy: Flipping Flips!
Flips – Your main capital property deal
What is a Flip?
A flip is a type of property investment strategy that involves buying a property at one price, increasing the value in some way or another, then selling at a higher price – Also known as:
- Fix and flip
Some key facts
- It may or may not involve refurbishing a property.
- You must be able to justify the higher sale price. This can’t be capital growth.
- Flipping is a fantastic way to make a lump of cash in one go.
Before you start a flip project, you really need to know what you are looking for.
There are three factors that need to come together for targeting the perfect flip property:
- The right area
- The right property
- The right situation
In order to sell the property once works have been completed, you should be buying in areas where you can see the market is moving quickly.
You will also want to be in an area where properties are selling quickly to owner-occupiers, rather than investors.
The ideal property to flip will be one that appeals to the largest number of buyers.
A three-bedroom semi-detached house would be ideal, because it could apply to both first and second-time buyers. By appealing to both markets you are likely to sell your property quicker than if you targeted a millionaire with 9 children.
You need to be looking for a property that needs refurbishment: there is no potential for uplift if you buy it in a great condition already.
Flipping is a very simple business model, but there is still a lot to learn. Whatever you do, start buying at the right price. That is the one thing that you can’t change as you go, and if you bag a bargain it will give you a buffer against any unexpected costs and overruns you may suffer along the way.
So flipping get out there and start flipping flips!!