With limited supply of single-family homes in key markets, more investors are flirting with the idea of flipping to capture growing demand. But it’s not for everyone, as one Realtor warns.
As more landlords seek out properties for flipping opportunities, property experts are warning that it is not a strategy that everyone should be embracing.
“People just like the idea of making quick money,” Realtor Angie Lakostik, who has several property flipping clients, tells CREW. “Real estate in Toronto is so strong, it’s blooming. So when you flip, you can sell it in six months or one year for more money.”
But not everyone is suited to a flip, she says, and not every flip will make an exorbitant amount of money. “Of course, it depends how much you put into it,” Lakostik says. “Be careful and do your research. Don’t overpay for the house.”
Indeed, the best flips stem from the steals – the homes purchased for a bargain. “Make sure that you get a good price so that when you flip it, you can get your money out of it,” she says.
After the purchase price of the house, flippers should be wary of the cost of renovations. Lakostik says the key is balancing cost with quality. “Hire someone you know and trust, a good contractor,” she says. “Sometimes people don’t know what they’re doing and they hire a big company, which costs them more.”
Better yet are the handy flippers who can do a large portion of the renovations themselves, saving on both the time it takes to do the flip and the amount of money that the flip costs. “The best flippers are the people who can do the job themselves,” she says. “They know how to do it and they only need to hire a few people.”