The hardest part of flipping is finding the right property at the right price so that you know you can make a profit. You need to find something that needs work doing, but ideally nothing too structural. Checking estate agents listings, online, word of mouth and auctions are a good place to start, and if you spot a property that has potential, you could also try contacting the owners directly.
But the property itself is just one factor – you also need to consider are the area and the situation.
The area needs to be one where properties are selling quickly. You will tend to get a better price from someone buying to live in the property, rather than invest, as they are more emotionally tied, while investors will have a budget or yield return they will need to stick to.
You can find quick moving areas like this by asking local estate agents and keeping an eye on Rightmove etc. But the general rule of thumb will be desirable areas with good transport links, good schools, green areas etc.
The type of property you actually go for will depend on what you want to do. For example, if you are looking for a house that you want to put a new bathroom, kitchen etc. in and then sell onto a family, something like a three-bed semi is ideal. It can appeal to both 1st-time buyers and 2nd-time buyers so there will be a lot of potential buyers, which could start a bidding war and push your profits up.
Bungalows can also be a good option – they are very popular with older people looking to downsize, and are rare, therefore, people are willing to pay quite a lot for them. The type of people looking for a bungalow generally don’t want to have to do any work on the property, so they can be ideal for flipping.
If you are looking to develop a bigger house or a commercial unit into flats or an HMO, then you will be looking for a property that has the potential for a completely different layout. For example, you may want to cut a large bedroom in half to create two, or if you are looking to create an HMO, perhaps a house with 2 large reception rooms, you could turn one into a bedroom.
The situation is also very important. For example, the property market has its highs and lows and there are points when no one is interested and other points when you could almost name your price. You also need to know the