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We’ve written about Edmonton before and this post expands on that, looking at how to make money in the province of Alberta. Specifically, it’s about how to be successful flipping houses. Alberta is already quite large, and its population is only expected to continue growing. And that growth will bring an increased demand for housing, which makes real estate a great investment opportunity. So, keep reading to see how to make money flipping houses in Alberta.
- Current population estimated at 4.44 million residents
- Population expected to increase to grow by almost 2 million, to 6.40 million by 2046
- Largest cities are Calgary and Edmonton, at 1.58 and 1.49 million inhabitants
- Average house price is forecast to be $431,116 (Canadian Dollars) in 2022
How to Make Money Flipping Houses in Alberta
From domain names and websites to furniture, people are flipping everything these days. And houses are among the most popular. It takes some skill, but flipping real estate is a great way to make a profit. The process is simple. You just buy a property, work on it to increase the value, then resell it at a higher price.
How Do You Get Started?
You should know a few things beforehand. First, unless you already own a bunch a property, you’ll need some cash. Also, you should have some carpentry skills to fix up the houses. You can choose to outsource a lot of it, but it helps if you’re knowledgeable to make sure things are done correctly. Potential profits are large, but there’s still a level of risk involved.
Scout Out a Location
The first thing you’ll want to do is to find a good area. Look at homebuyer trends and research land values to see where you’ll make the most profit reselling. The area should be popular, but steer clear of overdeveloped regions. And try to find somewhere without much commercial competition. Look for up-and-coming neighborhoods with old properties in need of renovation.
What’s Your Specialty?
Once you’ve picked out a good location, you’ll want to decide on a strategy. There are lots of options here. Again, having more to invest gives you more options. You can go for small, cheap fixer-uppers in average income neighborhoods. They won’t need as much work but won’t sell as high. Or, you can buy vacant land in wealthy areas and start from the bottom.
- Quicker turnaround
- Less investment required
- Won’t make as much
- Make more money per sale
- More work involved
- Takes longer
Sometimes it’s all about who you know. That’s definitely the case when you’re flipping houses. From contractors, to appraisers, to realtors, lots of people are involved in the process. Be willing to work with others. You may even want to partner up. You won’t make as much as you would alone, but you won’t risk losing that much either. And you’ll get the job done quicker too.
Give It Some Work
Okay, now it’s time to put in the work. Outfit the property with latest upgrades and make sure it’s up to code. Study other hot homes on the market to get an idea of what buyers are looking for. Flipping houses usually isn’t a full-time gig, so look into outsourcing parts of the project. Use your connections to find quality labor at an affordable price.
Put It on the Market
Time to put the house up for sale. Hopefully you’re in a seller’s market, with buyer’s clamoring to get your attention. If you’re lucky, they’ll get into a bidding war, driving the price up even higher. You may consider waiting a while if the housing market is slow. Renting the house is good option too. That way you can still bring in some money while waiting to sell.
There’s lots of money to be made flipping houses! Hopefully this guide gives you a better idea of what’s involved and how to be successful. It’s not for everyone though, and it requires an investment. The payoffs can be large, but it takes time. So, you’ll need to be patient and willing to take on some risk.
Read about How to Make Money Uploading Files if you’re seeking a quicker payoff which doesn’t require money upfront.