Flipping is a form of real estate investing where the buyer finds houses on the market at below market rates for some reason (mostly they are in a state of disrepair), fixes them and then resells for a profit. This requires one to first find such properties because they are not usually readily available, hence many investors miss out on those deals.
However flipping houses is possible if you have access to the right information, resources and people. There is really no standard to finding these properties but here are a few tips to guide you
Pick the right location
There are some locations in Nairobi where flipping properties may be too expensive because of the high prices of land in the city. However, if you have the resources and the market conditions are great the payoff should be worth the effort. Already there are quite a number of estates with old houses ripe for flipping. The challenge is that often, the locations with lower land prices have mostly newly constructed houses which are not ready for flipping.
Find property auctions
Property auctions and foreclosures are a good place to check out for discounted properties. Even though auctions can attract price wars, there is a chance of finding a good bargain and when you do, the upside could be very attractive.
Check out the market trends
You don’t want to flip in a market that is oversupplied because buyers will be spoilt for choice, furthermore most buyers may simply prefer new houses since price points in such markets are rarely competitive for sellers. The best markets to flip a house are those where there is high demand.
Talk to agents and brokers
Agents and brokers have a good knowledge of the local markets and can give important information on the types of properties to consider for flipping. If as a flipper you are not very well conversant with the market, local agents are probably your greatest resource I finding a deal there. You should look at as many properties as possible. Wholesalers may also turn out to be a great asset in these kind of deals due to the exposure they have in buying and selling properties.
Join a property investment group
You may inquire locally with your agent or use the internet to find a good number of property investment groups. You are likely to find a community of like-minded investors who may recommend a property in time.
Regardless of how good a deal looks like, in all this business of house flipping, you still have to do your due diligence and work out the math. Things like market conditions, taxes and other costs have to be taken into account.