With the Ontario housing market as hot as ever, the business of house flipping continues to be a great investment opportunity in the area. While very little
Though HGTV has made the whole process seem simple and easy, flipping a house isn’t for everyone. If done correctly, flipping a property can be a profitable money-making proposition.
The number one rule for property-flippers is that you need good credit to get into the business. It’s recommended to have a credit score of at least 700 or higher to get approved for a low mortgage rate. If you notice that your credit score is lower, it is recommended to pay up old debts and to build back your credit.
The best strategy for flipping a property is to buy one in a HOT neighbourhood with high demand. Windsor This location would offer easy access to transportation, parking and shopping, and other services. When you have all the above, a buyer will be prepared to pay more for your property. The down payment should be at least 20% to help boost your chances of getting financing. The more you can put down on a property the easier it is to get approved for a mortgage.
Once you decide on a property, there are more financial aspects to keep in mind, because at the end of the day, it’s all about making the largest return on investment possible.
- You need to have a contractor you can trust
- What do your renovations cost?
- What are your closing and selling costs?
- What will be your carrying costs?
- Are there any tax implications of flipping this property?
- Do I have access to extra money, should my timeline change or unforeseen costs come up?
Thankfully, we at MARDA Management are truly a FULL SERVICE property management company, and now, that includes project management and flipping services.
MARDA Management has been in the business of house flipping since October of 2019, with a portfolio of mostly single family homes, but more recently, with an eye to start flipping duplexes as well.
Co-Founders, Marla and Dale Coffin started flipping with the original intent to buy, renovate, rent, and sell to existing clients: already established property owners and investors. This way, they found, helps clients understand the rental rate expectation before determining what they could actually pay for their home.
More recently, however, because of ongoing market demands, MARDA has taken more and more opportunities to flip homes and then sell them on the open market.
In the past 24 months, MARDA has flipped 13 different properties, mostly single family homes, with the goal for the next 13 months to flip at least six more.
While based in the city of Windsor, Marla and Dale have expanded their reach to house flips in other Ontario cities, like Sarnia and Chatham, and as far away as Moncton, New Brunswick. The next adventure? initiating a flipping stream of investments in Detroit within a company the pair have recently started called, Motown Flip Co.
Are you a property owner or investor interested in utilizing MARDA’s flipping services? Patience and a budget may be key. While Windsor’s housing market is still very hot, deals can certainly still be found.
“Just be prepared to make offers on exponentially more homes than you expect to buy and are ready to renovate,” Marla suggests.
Right now, owners can expect a house renovation and flip to take about 150 days from the date of purchase to date of sale. With ongoing supply chain issues, and difficulty finding contractors, however, timelines are often expected to be longer than originally anticipated.
No matter which city you’re in, renovating and flipping real estate is a time consuming and expensive investment. If you’re already a MARDA Management client, then we do charge an 8% project management fee on the gross cost of the project to manage renovation projects, flips or rentals.
If you’re a property owner or investor, looking to make the greatest return on investment possible, then call or email us to learn all about what full service management means with MARDA Management.
