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dan southall

Buying Flip Properties with small margins

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Evening all,

 

I am currently saving for my first flip property. My 5 year plan is to have saved £40,000 within 2 years, with my current savings being around £17,000. I also want to have flipped 4/5 properties in the remaining 3 years of my 5 year plan. 

My question comes in the terms of finding properties with small margins for profit. How do i go about find the properties where money can be made with not a huge amount of renovation costs. As i am finding at the minute, my renovation costs are really driving up my initial capital outlay, which i need to reduce as much as possible to get started as soon as possible. Any tips on finding those small margin properties and how to deal with them would really be appreciated. 

 

Thanks

 

Dan

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Hi Dan,

I'm also going to begin house flipping once my current residential home is sold and I have a bit of cash to invest - I'll even be documenting my journey into it... exciting times!

What I am personally doing, as a complete amateur and newbie to this, is putting some serious hours into scrutinising the listings on Rightmove, Zoopla, OTM and at my local estate agents. This is giving me a good idea of the genuine market value of certain areas and property types which will (hopefully) allow me to buy at a good price. Absolutely key to ensuring you are able to make a return.

If you start doing similar, it should allow you to find those properties that aren't necessarily run down, but might just have 'old' decor. Those that could do with a fresh lick of paint and maybe a slight kitchen upgrade. Some of that work you could even do yourself to save even more money. Either way, by doing your research into what the genuine market value of properties is (and we're talking the type of property including decor you're going to buy and what it will be able to realistically sell for once it's been refurbished), this should give you a great starting point to ensure you buy at the right price.

Hope this helps :)

Mark

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