Reducing Your Risks When Buying, Fixing, & Flipping Properties

This is our business to Buy, Fix, & Flip HMO properties in Manchester. I can tell you first hand there are always alot of moving parts and issues. Have a couple of quick suggestions for those starting their property investment adventure

1. Make sure you are liquid for the inevitable unexpected overages and costs. Allow at least 10% more for your refurbishment property project. We have one right now that the council is making us put in an extension….cha ching….8k…poof…

2. Perform your due diligence on the property and neighborhood. You want to know what properties are selling for that are distressed, that are renovated, and that are in average condition. You need to know how long properties are sitting on the market. You simply have immerse yourself in the numbers and know all the right people.

3. Start Small…..Look for a property property that only needs a cosmetic rehab. What I mean by that is paint the inside, paint the outside, replace the kitchen counter tops, paint the kitchen cabinets, put new fittings in, add new laminate floors, install new tile or carpet, replace light fittings, and perform landscaping. These are basic items that when you’re looking at buying, fixing, and flipping aren’t that expensive to do. You can get in and out quickly.

4. Have multiple exit strategies. Have a Plan A…Plan B and a Plan C. This way you can survive any unexpected issues that could come up. If you are flipping….I’d advise that you don’t price the property too high because you don’t want it sitting on the market for longer than necessary. I always like to rehab all of my A-class flips to a better standard than comparable sales and list them for the same price or a little bit cheaper because time is money. The sooner I can get my money out of the deal and move it to the next one, the more deals I can do in that calendar year.