Is it really possible or is it just a myth?
It certainly is possible however there are numerous factors at play that ultimately determine the outcome. Let's start with some of those;
If you buy under market value then you are already off to a great start. Using the below example pictured, the value of the property in its original condition was approximately $520,000 so there was some equity made on the way into this purchase through a combination of good negotiation, market sentiment and the run down nature of the property
Nothing beats getting in there and putting in some hard yards. Thousands can be saved on tasks that many of us have the capacity to do ourselves such as gutting out the existing structure, sanding, painting to name a few.
Seeking recommendations for affordable and reliable trades will drastically reduce costs. Tasteful and luxurious looking renovations do not need to break the bank. Read on to find out the breakdown of the renovation pictured
Buying into a place where a premium is put on a finished product will pay out well for you. You want to make sure the consumer in your market sees the value in your finished product and is willing to pay accordingly.
The general market sentiment also plays a critical role for obvious reasons, if the market is performing well your valuation will come in favourable as you have high recent sales as comparisons. Conversely if the market is going through a lull then your valuation will not come in a strong.
Purchase Price $486,000 Renovation Cost $17,000
All in $503,000
Bank Valuation $600,000
Bank Valuation $640,000