In continuing our 5 part series on how to flip a bungalow, we start with the obvious challenge, finding a bungalow to flip!

In our current market, this can represent a challenge as there is a shortage of inventory however for the purpose of blog post; let’s assume we are in a balanced market.

We define “finding a bungalow” for the purpose of flipping as: A Bungalow with Investment Potential.  Many or most bungalows out there do not necessarily have investment potential, although that depends greatly on what you are looking for as far as
a return on your investment.

FIND:

When you start your search you need to develop specific investment requirements that meet you “your” criteria for selecting a bungalow (durhambungalows.ca can help with this) including:  Price Range, Acceptable Condition and as you have all heard in the past LOCATION LOCATION LOCATION!!

At this stage when searching for properties you will create a plan to uncover likely investment properties, from this you will approve or reject based on these criteria. Remember, most bungalows won’t make the cut, but those that do, you can then move them in to the next stage of Analyzing.

WHAT IS YOUR GOAL OR TARGET?

If someone wanted to sell you a bungalow for investment in Japan, unless you lived there, you likely wouldn’t have to think to long about that answer: why?  Well it’s obvious:  It’s too far away.  It’s too difficult to travel there. And what do you know about Japanese real estate market? Likely nothing.   When choosing to make a decision on where to invest in real estate investment property we apply some of the same reasoning you just did in ruling out Japan.

Targeting Process:
Define Target Criteria and Identify Target Neighborhoods.

This stage of Targeting can be very daunting and challenging but I will assure you, it’s crucial in your success, so all the more reason to identify and target areas with the greatest potential for success:

5 Benefits to targeting the right bungalow area:

1. The cost per lead is lower:  Your money is spent on targeting high quality
2. Less TIME Qualifying Leads:  You will spend less time on unwanted leads.
3. Find Quicker: If you know what you want down to the detail, it’s easier to find.  For example, you seem to never see a white 4 door Cadillac unless you buy one, and then you start to see them everywhere!
4. Buy More Bungalows: You will have more qualified leads to work with, which means more bungalow-buying opportunities.
5. Buying the more profitable Bungalow:  When you know the neighbourhood you can be more choosey and what deals to take and as you have more leads to choose from.  Remember this can take some time to do it right so “Don’t Rush”!

This stage of targeting is very important:   We have learned this lesson in the past when we bought a bungalow just outside out of our targeted area (all of our homework was done in this area). This bungalow was selling for such a low price we thought it would make
a great profit. Being that our homework was done outside of this property; the criteria we chose did not extend to this area.  Selling prices were falling and nicely remodeled bungalows were non-existent. We finally sold the bungalow resulting in loss of $2,300.00

WHAT MAKES A GOOD GOAL AREA OR TARGED AREA?

The criteria we follow for our target area are as follows:   (For more details on
this please contact us directly at 905-430-2320 or email to brian@durhambugalows.ca )

1.  Proximity of the neighborhood to your work or home:
   1. This is so important, there is nothing worse than working all day and having to drive 30-40 min to your investment property to keep an eye on what your contractors etc are doing and how the job is progressing.  Remember you have to be on top of this at all times, your success depends on it!!
2. What have the selling prices of bungalows been in this area:
   1. One of the biggest factors to make money on your investment is how fast homes are selling in a particular area and what they are selling for; your profits depend on it! (We can help with this and help you determine what’s hot and what’s not, what trends are coming and going in Whitby, Oshawa, Pickering, Ajax, Scugog, Port Perry, Uxbridge, Clarington etc.
   2. TIP!!! NEVER buy a bungalow just because it’s Cheap!! Stick to bungalows near the median selling price for an area by finding out where most people are buying and avoid the high end unless you are an experienced investor.
3. Selling activity of bungalows in the neighborhood:
   1. The most desirable areas and places to focus your attention on are those that seem to pop up and sell straight away, this indicates a great place to invest.  We can help with this by providing you a market evaluation for your chosen area; remember if the numbers don’t work… you walk!
4. Age:
   1. The age of the bungalow can be good or bad. If the bungalow is really old, which you see many of them around the Durham Region, can lead to higher costs of renovation, especially the electrical and plumbing $$$$$ cha ching!!!.   However, the older homes tend to be owned by people that have lived there for a very long time, meaning they have a lot of equity in the home, and this could benefit you as you may be able to get for a lower price.   (contact us to explain)
5. Appeal:
   1. One of the most valuable of all the criteria is the appeal.  By purchasing in an area where people want to live can greatly benefit you.  Is the area close to shopping, medical centres, walking areas, parks etc. (as the population is getting older, access to areas like these will be of value)
6. Safety:
   1. This is always a concern with people and it should be. If you’re purchasing in an area, make sure it’s safe, you can go to the police department and they can help to advise you on your chose area what the crime rate is, if any.  People want to feel safe, don’t you?? AND… this can be a great marketing tool when you are selling!!

I hope this information has been useful to you; our next blog on investing for a flip on bungalows will be on Generating Leads to find your next investment property.

Please give us a call and we can help on expanding the above information.

Have a BUNGALOW DAY!!

Bungalow Specialist, “Bungalow Bri”

WHAT AND WHERE ARE PEOPLE BUYING BUNGALOWS?  Hint… Ranch isn’t only for salads!!!!

Is there a trend out there for purchasing bungalows?   There most certainly is, however, what people “want” to purchase and what is available are two completely different
questions.

Granted, bungalows are selling all over the Durham Region, providing they are priced correctly and or staged, however a trend we are seeing here at Durham Bungalows.ca is rather surprising, even to us.

With the aging population, we thought the real trend would be for bungalows on smaller lots, in quiet quaint areas close to amenities like, shopping, church, recreation facilities a like, and don’t get me wrong, a large amount of the shoppers are in-fact looking for these types of properties, however, we are seeing a trend moving towards the rural bungalow,
typically, ranch style with at least an acre lot and detached outbuilding (garage / work shop). !!!

These types of properties, are harder to find, however, when they come up on the market, they get gobbled up quickly.

So, if you have lived in a city and looking to branch out to the country, you’re not alone, call or email us to have your name on our Country Living Bungalow to increase your chances of sipping lemon aid on your wraparound veranda, southern style!

The Bungalow Guy… Bungalow Bri

Spring time can bring a lot rain and with old style bungalows, the foundations may either require waterproofing or it may be as simple as making sure the landscaping and slopes are rewarded to insure water stays away from the foundation.   Have a look!

There are still deals out to be found (contact us to find).  The advantage of flipping a
bungalow is it can cost less to renovate do to the one level structure of the
home.   With the structure, running new plumbing or electrical work can me much easier than a two story home and the return on the bungalow is proving to provide more money in your pocket.

How to flip:

Obviously I couldn’t in a few short blog posts explain all the in’s and outs of flipping a home.
Over the next few months I will take you through the process, and if you have any questions… just ask, we are here to help.

To be clear, we define flipping as buying houses under value, fixing them up and selling them for a profit.  Others think it’s about buying a property and then immediately turning it for a quick profit.

Our system is structured in 5 stages: :

1. FIND-  A House with investment Potential
2. ANALYZE- An Offer that Maximizes Profits Given the Risk
3. BUY-  An Investment House You Own
4. FIX- A Renovated House, Ready to Sell
5. SELL- Profits in the Bank!!!

On our next blog we provide you with a summary of all five stages… stay tuned and as always, if you have a bungalow to sell or looking to buy, call the Specialists to secure your investment.

The Bungalow Guy… Bungalow Bri!