How to Buy and Flip Homes for a Profit in 2024
Ok, we will absolutely concede that this is a loaded topic.
When most people think of buying homes and flipping them for profit, they think of shows like ………………….. where the hosts or ‘investors’ buy homes during the lowest possible time, do their renovation work quickly (with a few kinks for drama of course) and then sell them off for a tidy profit and everyone is happy - including the viewers!
And while there are moments like these in real life that could happen in Toronto and the GTA, mostly when cheap money is sloshing around and you get 10 offers on every property where every bid comes in $50k higher, that is a great time to be buying.
But not only is it not realistic and impractical in this new economic environment, it could also be very dangerous for potential investors if you do not make the right moves and do not have the cash reserves to sustain such a move. But we believe there is still plenty of opportunity in this market if you work with the right people, employ the right strategy and of course make a move at the right time. Real estate success is really more about timing than it is about money right? Well, both are equally important.
So in this post we will discuss the two types of flippers that have enjoyed success over the years with us whether it is purely a profit and flip strategy where you already own a home, live in a home and don’t need to ‘flip’ your own home. We should also point out that we do not provide tax advice in this post or even in our services so you must consult with your own tax and financial advisors. But let’s get into how you can flip homes successfully and live the good life doing what you love and adding value to society by turning and flipping homes for a profit in 2024.
The Pure Flipper
These are the investment savvy individuals who already own a home, live in a home and they purely want to own property, perhaps rent it out for a couple of years or even a couple of months until better times arrive again.
As the saying goes in real estate, you buy low when everyone else is running for the exits. We would recommend purchasing smaller homes like townhomes, semi’s, smaller detached properties or even older homes. The one thing about older homes is they typically sit on nicer pieces of land and the homes are typically smaller on the inside (which requires an open concept layout) and they typically have functioning basements for immediate basement rental income. Big plus!
It goes without saying, to be a pure flipper, you need have deep pockets of cash or accessibility to cash including HELOCs, partnerships with other investors and of course close connections to renovators and contractors that are reliable and do a great job in a timely fashion, which we have on staff here at Selling Toronto RE.
You can expect that in order to purchase a flipping home, you’re looking at spending between $800-$1M for a property that likely requires another $100-$200k in renovations. Obviously a key strategy here buying homes that are well-kept like granny and grampy homes. Why?
Because older generations take great care of their homes. Often times, that’s all they need to do on a daily basis is take care of and clean their homes. Most of the time, we find these are the best kept homes where major repairs like roofs, plumbing, mechanical equipment are already replaced. And sometimes you might even get bonuses like water softeners, central vacuums (which nobody uses anymore), additional foundation support, additions and extensions and finished income-ready basement apartments (not legal of course).
Often times, we come across these amazing opportunities for our clients whatever it is they are looking for. And given what we know now about the Toronto and GTA housing market and the endless demand it seems to have, now would be an opportune time to become a true real estate investor in 2024 and of course, your first move is to talk to us the professionals here at Selling Toronto RE where we can help you find the right home that ticks all the boxes. I mean, who wouldn’t want to become a full time real estate investor flipping properties for cash and for fun?
Contact us here today for more details and to work with the pros