A step up from regenerating houses or pre-existing live – in properties is when you take a commercial building and convert it into residential. You create more homes than with a flip, but the fundamental principles are the same. The average flip produces profits of just under £50k, whereas a small conversion project is likely to net you between £150k and £500k, depending on its size and location. The budget for commercial flips will also be ten times the size. You can afford to hire a main contractor to take care of the construction rather than a jobbing builder.
The 3 biggest tips are:
- Get some recommendations from construction management companies for contractors
- Ensure that your project manager is one that you are able work with as you will be spending a lot of time with
- Find properties locally as it is more practical and the connections in the local area will often help in the long term
Will you consider taking on these projects?