Toronto condo kitchen

Buying

Can you really make money flipping a condo? In the Toronto condo market, there is definitely money to be made in flipping. But not the kind of flipping you tend to hear about in the media called Assignment Sales. What we’re talking about is purchasing a dated condo, renovating it within a very tight timeframe and selling it for profit.

When it comes to flipping properties, renovating a condo rather than a single-family home can be a great option. With a condo renovation, not only is the property smaller than the average home, but you also do not have to budget for exterior or roof repairs, sewer issues and outdoor amenities. You will, however, need to worry about demolition logistics, materials timeline and condo board standards to keep the renovation on track, on time and on budget.

A small space, like a condo, can also be an easier jumping off point for the first-time flipper. Here are some important things to keep in mind when flipping a condo.

Advantages to Renovating Condos

One of the biggest advantages we see in renovating and flipping condos is the market for brand new units. There is no shortage of people looking for pre-construction condos, but there are many others who want a brand-new unit, but don’t want to wait until a development is finished. Plenty of first-time-buyers are looking for a turnkey condo that they can move into immediately and start living their best life.

Adjust Your Timeline and Budget for a Smaller Project

Smaller property flips move quickly. Pre-planning your timeline and budget cannot be missed. Before you purchase a condo flip project talk to the property manager. Ask about rules and regulations around renovating a condo. What are the work hours like? What permissions do you need to have before starting? What are the biggest improvements that you can make that will pay back?

Once you have everything lined up, make sure you order your cabinets and countertops on the day of closing, and if a particular material is back ordered, you’ll likely need to choose an alternative that you can get into the property fast.

Condo bathroom

Rules, Approvals and Demo

Something you’ll need to be very keen on is the building rules for demolition debris removal. You’ll need to make a plan that complies with the building yet makes the most sense for your demo. Is there a courtyard or spot on the street for your demo bin? What about elevator protocol? You will likely need to book it for at least a few hours to take down anything that needs to go out.

Eventually, you will need to shut the water off for plumbing updates and repairs. The property manager will have details on how and when you can do this. Some buildings may only do it once a month. If so, you may find yourself sitting in an unfinished condo, unable to make progress for weeks at a time. To avoid this, find a good contact on the board for advice when these restrictions become barriers to completing work.

Exterior Limitations

When you first evaluate a property, remember that you are unable to change the curb appeal of a condo flip. If the outside of the building looks subpar, potential buyers will assume the interior of the property is comparable.

And if your condo has a balcony, don’t ignore this advantage. Clean up the outside areas and make them shine – it’s something buyers will be interested in when it comes to selling.

Identify Neighbourhood Demographics

Are the building’s primary residents’ millennials looking for ultra-modern, open space with lots of natural light? If so, consider opening up walls as much as possible.

On the other hand, if your demographic is 55 +, design the flip with accessibility and comfort in mind. Traditional design decisions will likely suit your potential buyer’s style.

Lean on an agent for input as they usually have relationships with condo communities. Your “in” with an agent gives you another property source as well.

By creating positive relationships with the condo board, building managers and contractors, you can make condo renovations smooth, and possibly find additional opportunities in the process. These flips go by fast so ensure that you dial in on your timeline and budget, and always check the comps.