Flipping property is all about buying a property cheap and selling it for a high price – the key is to spend as little money renovating whilst adding as much value as possible. If you’re on a tight budget, this forces you to think cheap. As much as you may want to add granite countertops to the kitchen or build a massive extension, this won’t be realistic if you haven’t got the funds. To help you to still make a profit, here are a few tips that will help you to flip successfully on a tight budget.
Always inspect the property first
Most people buy properties to flip through an auction. It’s wise to always inspect the property first before attending the auction and placing a bid – this will allow you to fully assess the work that needs doing so that you can tell whether its feasible within your budget. The one thing you really don’t want to do is buy a property that you can’t afford to do up, all because you bought it blind in auction. This rule applies to all properties bought in auctions, but is especially important for those with limited funds.
Get hands on
Hiring out contractors will ensure that the property is renovated to a professional standard, however it will cost you a lot more. Consider whether you can save costs by doing certain renovation jobs yourself. Jobs involving plumbing and electrics are best left to contractors, but you may feel confident enough to manage tasks such as repainting or laying new carpets. Know your limits – a botched job won’t do anything for the property’s value and could cost extra money to put right, so you’re best staying within your comfort zone.
Fix only what needs to be fixed
It’s best to prioritise fixing things that are damaged or worn. Don’t replace anything that’s in good condition (unless it’s completely ugly and likely to devalue the property). Even if you’d prefer to add new kitchen cabinets or retile the bathroom to fit your style, there’s no point replacing these if they still look decent – you’ll be wasting money that could be spent fixing things that are broken.
Focus on the details
You may not have enough money to completely refit the bathroom, but you may still be able to use small details to transform the room such as changing the toilet seat, adding a new light fitting or replacing an old mottled mirror. You may be able to order custom made parts from a plastic tubing & extrusion manufacturer for simply hiding pipes or covering wiring to make the property look more attractive. These small details won’t cost a lot to improve but could still leave enough of an impression to increase the value.
Consider using reclaimed materials
If you need to replace a countertop or relay a wooden floor, consider where you buy your materials. Opting for reclaimed wood could be much cheaper than buying brand new timber. Using recycled materials is also better for the environment, so you can feel prouder knowing your work has had minimal harm on the environment.
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