Can you flip houses in Calgary and make money right now?
We sure think so, take a look at 3 townhouse flips in Calgary.
We went back 15 months and combed through over 22,500 sales to find twenty six bonafide townhouse flips. There are investors taking action despite all of the reasons not to!
What did we learn?
Here are three key points:
1. Observation: Over 50% of the sales were ‘bank owned / distressed sales or marketed as “handy man specials.
Takeaway: Investors need to know what to look for to find these. The opportunities are often hidden in data fields that only realtors can see.
2. Observation: The deals were distributed all over Calgary – there is no one ‘hot’ area for townhouse flips.
Takeaway: Investors need to be ready to go to where the deals are!
3. Observation: Very few structural changes were performed as part of the renovations. Takeaway: Successful flips do not require full remodels, most of the work is upgrading the wear surfaces, paint and generally modernizing the existing floorplan.
Here is a sample of 3 of the 26 observed flips:
Flip #1 Greenview: Buy: $163,500, Sell $230,000. Margin: $90,000
Flip #2 Patterson: Buy: $294,900, Sell $421,300 Margin: $126,400
Flip #3: Temple: Buy: $196,000, Sell $280,000 Margin: $84,000
If you’d like to check out the before and after pictures and get a look at the transformations, have a look here.
What does it take to be a successful townhouse flipper in Calgary? Here are our top tips:
1. You need to be ready to pounce when the opportunities come. The top candidates get lots of interest and they sell fast. It often means no conditions on your offer!
2. You also need to understand how to estimate renos or perhaps co-ordinate yourself. Ideally you have some level of experience in renovations or project management to ensure you can stick to your budget!
3. You need to be able to sell back at a price that is not out of line for the area. Having a good agent helps to know what end-user buyers will pay.
Are you interested in taking on a flip while the market is quiet? Would you like to see the remaining 23 flips? Some of them are pretty cool!
If so simply contact me and I will email them to you and arrange for an appointment to help set your buying criteria.
Stay tuned next week because we’ll be talking about detached flips! There were 53 of those over the same period with a couple interesting trends!
Thanks for reading, and as always – Happy Investing!
KARLA LINARES, Realtor®
Redline Real Estate