This post contains affiliate links, which means I may earn a small commission at no cost to you if you make a purchase through my link. Information provided for educational purposes only. Please consult experts and professionals before taking action on the below.
Consider sponsoring this post to help us share this knowledge with others!
Have you ever thought about how easy it would be for you to enter the property market? Within a couple of years, you could easily have a couple of houses that you earn a regular income from, or have flipped several properties and potentially earned six-figure profits. With some startup capital, and some hard work and perseverance, you could start flipping properties or be part of the lucrative buy-to-let industry.
Starting Out
You have a couple of routes into the market, and these will depend on your current financial situation. If you have some savings put aside, you might want to look at investing in a run down auction property that you can buy cheaply, renovate, and then sell on.
If you don’t have this option, another route might be to partner up with someone that does have the startup capital needed. You might not stand to gain as much in this manner, but agreeing a profit split could work.
The third option would be to take out a mortgage on a buy-to-let home. Here, you’d need to ensure your rental earnings could be higher than your mortgage payments. You could get this by adding value to the property. You may want to bring in a property management services company to handle your leasing, keeping your hands free to move onto your next project.
Flipping Property
Turning around run-down homes can be a potential goldmine. Often, homes in poor condition are too tricky for real estate firms to sell. They’re liable to fail their surveys and buyers will get turned down for mortgages if the buildings have structural issues.
At auction you can pick up a property for cash at a fraction of the price similar situated homes would sell for through traditional real estate agents. Once you have the house, it’s yours to flip and sell on.
Renovation
Think about how to add the most value to the building for the least time, effort, and expense. Increasing living space is one way that you can do this. Look for ways that you can do this without the need to extend onto the property. If there are any areas of the current structure that are not currently able to be lived in, you could convert them into rooms. These might include garages, basements, and attics.
If there is existing planning permission in place for an extension, then this may be an option. However, if you wanted to put in an application for any work, it could take you some time to get approval from your local authority.
Selling On Or Renting
Many property investors will opt for a variety of resale and rental projects. Making these decisions based on a particular house may be a good option. Extending your portfolio so that you always have three houses may also be a good plan. One to sell, one to rent, and one that you are renovating will give you a balance of passive and active income.
Leave a Reply