Looking at flipping instead of long-term buy and holds.

Looking at flipping instead of long-term buy and holds.

Rental Property Investor · Vancouver · Member since 2021 · 6 posts · 4 votes

Hello everyone,

For the last few months, I've gone silent and a bit off the radar when it comes to REI. During that time I have looked at and changed my idea of what I would like to do when it comes to investing in real estate.

Originally, my plan was to do long-term rentals within the US - this has now changed for me.

My thought process for all this was that I want to generate more cash and be in-and-out of deals at a much faster rate. That being said I would like to switch my focus to fix & flips in Canada. Could be anywhere in Canada too as long as the numbers make sense. 

I also would like to connect and network with fellow Canadians who have ventured down this path of flipping houses and to hear your experiences. Who knows, maybe this could lead to a JV in the future.

I guess my main question is - where did you get started when it comes to flipping. Not geographically, but more the steps you took to get to your first deal. 

I don't have a TON of capital ready (roughly $50,000 CAD - potentially more) that I can use to get the process started.


Would love to hear your experience so far and what your future plans are as well.

Thanks and cheers to your continued success!

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  • Member since 2022 · 21 posts · 10 votes
    4y

    Wow want made you want to start checking out Canada?  

  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    4y

    @Alireza Shayan, while I cannot speak for investing in Canada, in general I don't see the current market being great for buy and hold rentals, unless there is a major rehab component.  And even then, your returns are still contingent on long term appreciation after the initial rehab.

    I got started flipping through knowing the neighborhoods, having done small renovations over the years to my primary, and buying rentals out of foreclosure that needed various levels of rehab to get rent ready.  This helped me learn general costs, issues to look out for, and start meeting contractors.

    Once I started formally flipping, it was small scale, cosmetic rehabs, the occasional roof and HVAC.  I did several of those before getting into converting unfinished areas, or true additions.  In today's market, I personally am not buying anything that isn't a near gut remodel, because consumers are willing to buy any house that essentially only needs cosmetic work but is livable, so prices don't leave any profit.  Therefore I have to buy properties that need so much work, most buyers will not know where to begin.

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