The term “house flipping” refers to the action of buying a property, renovating it, and then selling it for a profit, all within a short period. Many people have successfully jumped onto the house flipping trend and have made a lot of money very quickly, but is it as easy as it sounds?

As with any ambitious project, successful house flipping requires hard work, perseverance, and a commitment to following simple rules.

Check out these valuable tips:

Don’t be afraid to start small

Amateur renovators shouldn’t take on more than they can handle. Select a small property as your first project. Keep in mind that you can upgrade to a bigger property with your next purchase. 

Assess your financial resources and create a budget

Unless you have several thousand dollars saved up in the bank, you’ll need bank finance to purchase the property. Homeowners (regardless of whether their properties are mortgaged or not) are at an advantage here as they can extract equity from their homes for the initial purchase. 

Financing the renovation is another concern. This is a business transaction, so create a budget, investigate the availability and pricing of items needed for the job, and endeavour to work within your defined financial boundaries.

To prevent the renovation costs from exceeding your budget, create a work-time frame schedule. Whether you do the work yourself or hire other contractors to assist you, costs can escalate if the project exceeds its projected time frame.  

Find a suitable property  

Research the property market and find a place that offers great potential capital growth. You’ll also need to familiarise yourself with sales data so that you can identify a good deal when you see one.

Tailor to a target market

Some renovators make the mistake of over-customising their improvements when they should be keeping a specific demographic in mind during the renovation process. For example, if you’re renovating a one-bedroom property, you could tailor the renovation to meet the needs of single professionals or childless couples.