Quick Flip – Cosmetic reno
This property has particular appeal for younger professionals who are looking to move up from apartment living and have not been substantially or financially impacted by the Covid-19 outbreak. Business professionals with plans to start or add to their small family they have no time or interest in a fixer-upper. They are moving from a modern apartment and want to feel like they are getting a new home. This property will also appeal to couples with an “empty nest” looking to down size and maybe using any excess capital from the sale of their larger family home to invest in another income earner as for their retirement. Without a cosmetic reno/update, this property lacks any appeal for the target market and a low price becomes its only selling point.
Well suited for: *
Renovate and Flip
Located where the market has a clear divide in the value between the “Good” and the “Bad” of $200k to $250k. Marketed at the lower end of the market, this property is poorly presented and is struggling to find a buyer after an extended period. With a small renovation budget (around $50k) this property has the potential to lift in value by $200k with and average on market period of only 30 days and plenty of upside.
Renovate and Hold
In an extremely well maintained neighborhood there is high demand for rentals from people who are house proud. Renovating for rental will attract a higher level of positive cash flow while potentially allowing for a significant increase in lending valuation to allow investments in further property opportunities.
Rent and Renovate
With a minimal amount of work for a Handyman, this property could be put on the rental market “as is” and be an excellent little earner providing around 3.2% rental income on investment. Perfect for a young couple looking to start a family, this property could be rented for 6 to 12 months (or more) and then be renovate to dramatically increase the properties value and offer the new home feeling to the owners when they are ready to move in.
* Based on RP Data. Full report available on request.
This is what it should look like but it doesn’t