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Hi, When i initially started property investing, i was only interested in quick turn around renovation properties that were making me cash, other people thought i was crazy due to CGT etc but as long as i had thoroughly done my research i was happy with my strategy and i guess you need to be comfortable with whatever strategy you feel is right for you.
There are a lot of factors to consider when choosing a quick flip renovation for profit. The main ones being:
1/ Your figures are accurate around what you can sell the property for. This is probably the most important thing, if you have done all of the research in regards to this and your figures still stack up then it looks promising
2/ You have included Stamp Duty, holding costs and buying and selling costs in your calculations
3/ You have calculated your renovation costs accurately (sounds like you have a secret weapon for this)
4/ You know the area you are buying and selling in as far as how long it takes to sell properties and what the buyer is looking for so you can calculate that into your calculations
5/ And you stay on track with the renovation itself. If you are really organised you can have a renovation done in a few weeks. To give you an idea, on of my recent 2 BR unit renovations only took 2.5 week and from settlement to settlement i only held it for 8.5 weeks. So, this strategy can be very rewarding when you plan correctly.
Usually the calculations you work on are if you buy something you want to sell if for 133% of what you purchased it for. So in your example, you purchase for $370K you need to be selling around $499K (so you're not far off – may need to tweak a few costs though if you can).
Let me know if you need any other information.
Have you thought about putting a granny flat on it?
