How to Flip a Condo. Condos make great investment properties for many reasons. When it comes to rehabbing a property, houses often bring about attractive profit margins while condos help investors build a steady stream of smaller, but not inconsequential, income. Money can be made through this form of investment by those who follow a few guidelines. Continue reading to discover how to flip condos and add a little padding to your retirement funds.
Make a low investment. It is the key to larger gains on any property rehab. And it is even more important when it comes to condos--which typically do not grab the brass ring price tags houses manage to snag. The same holds true not only for the price you pay for the property, but also the investment you make in rehabbing it.
Increase the condo's initial appeal. First impressions matter most. While you may not have the same degree of creative license for curb appeal with a condo as you would with a home, it is important to make the unit stand out from others. You will make no profit and fail in the flip if you can't get buyers to cross the threshold.
Invest most of your money in areas where the payoff is greater. Condos do not offer maximum versatility. It is unlikely that an extra bedroom can be added or a garage can be converted. More likely than not, dressing up the kitchen and bathroom, and perhaps some clever landscaping, are going to offer the greatest returns. You can perform cosmetic touch-ups elsewhere, but save the bulk of the budget for these two rooms.
Be flexible. This is very important when it comes to condos, which may or may not be easy to turn over at any given time. Condo investments do offer some degree of flexibility in terms of ways to make a profit: If the flip doesn't pay off quickly enough you have the lease-to-own option, or the option of renting the condo.