1. Is it structurally sound?
Does it have good bones? That’s the one thing that’s going to save you mega money at the backend.
If you’re not confident with checking this yourself, a professional building inspection is a worthy investment.
2. Avoid a bad layout
A poorly considered floor plan is an absolute no-no.
Older homes can often have inefficient layouts that modern buyers don’t want, such as small boxed-in rooms and pools dominating a backyard. Check that any changes you plan to make won’t affect the foundation of the home (in other words, can be easily and affordably updated, such as knocking down an interior wall that isn’t supporting that roof).
3. Look at the lived-in spaces first
The big three you’ll want to tackle first in a flip are the kitchen, bathroom and living area. These are the rooms that will give you most bang for your buck in terms of return on investment, so your budget and time should focus here.
4. Start small
Flipping is an exciting venture, but don’t get carried away with big dreams for your first one.
If you’re getting started into flip, don’t go for a huge property. Scale it back.
There’s plenty to learn during the renovation process, so work your way up to that large-scale project. Slow and steady.
5. Don’t overcapitalise
When renovating for the purpose of profit, it’s a good rule of thumb to stick to a budget of up to 30% of your purchase price.
Be sure to stay within the limits of your spend by making practical decisions over emotional ones – overcapitalising on lavish updates will affect your overall return.
Article from realestate.com.au/lifestyle