Reno and flip: How to make big profits fast
Category Newsletter: HeadOffice
With many markets currently moving up so quickly, some investors are once again considering renovate and flip strategy. Here's what you need to know before embarking on this advanced strategy.
Flipping real estate takes work and can be risky, but the potential rewards can be huge. That's why investors are attracted to this strategy.
The key to the 'renovate and flip' success lies in knowing what improvements to make, in order to generate the highest possible profits.
As a rule of thumb, you want to get back at least R200 for every R100 you spent fixing up the property.
One way to achieve is to stick with doing cosmetic renovations rather than the more time consuming structural work.
Paint is inexpensive and can instantly refresh a tired, shabby looking property, both inside and out. It's also something you can do yourself to save on costs, and it doesn't take too long to execute.
Even if you hire a painter, chances are you'll get back so much more than you spend on it than anything else. In other words, paint is the ultimate cosmetic fixer.
Author: Century 21 South Africa
