If you’re trying to start investing in the real estate market, then you are probably concerned about how much it costs. One common option is flipping properties for profit. This can be a great way to make a profit rather quickly, and, contrary to common belief, it doesn’t have to be expensive either. There are plenty of ways that you can cut on costs, and make sure that you get a nice return as a result. Here’s how you can flip properties on a shoestring budget.

Use Your Home Equity as Leverage

Know the equity that you have in your current home will come in handy if you’re looking for financing. Investing on modest projects at first will allow you to pull from your equity without putting it at risk. It will also open you up to a wider number of options.

Focus Your Efforts on the Right Areas

If you want to cut costs on a project, you want to focus most of your energy on things that actually matter. You don’t have the means to start thinking about high-end tiles and marble countertops. You also want to focus on parts of the house that are the most important for buyers, like the bathroom and the kitchen. Not only will taking care of big issues reassure buyers, but it will also allow you to save on home insurance.

Another thing you could do to cut insurance costs is to use comparison services. Online services like QuoteZone, for instance, will allow you to compare home insurance quotes from various providers. Their service is completely independent and unbiased, and they aren’t paid to favour one company over the other. They also make the process as easy as possible and allow you to get tons of home insurance quotes quickly through one simple form.

Assess Your Skill Set

If you’re already used to DIY projects, then you’ll be able to save a lot of money by doing the bulk of the work yourself. If you don’t, know that you can always learn. Some projects might seem difficult on the surface, but much simpler with proper instructions.

However, make sure that you know your limits. Plumbing and electricity work should be reserved for professionals. An electricity accident could cost you your life, and one plumbing error could result in thousands in damage, so the initial savings are definitely not worth it.

Get Discounts on Materials

There are tons of ways that you can save on material if you know where to look. For instance, you could look at other contractors and house flippers. A lot of them may have leftover material they have no need for and will be willing to give it away for a fraction of the price.

Also, learn to be familiar with low cost alternatives. For instance, LVT tiles could give you the same effect as hardwood, without the price tag. Using veneers wisely could also help you get high-end results on a budget. There’s little difference between a brick veneer wall and traditional brick wall, but there’s a major difference in cost.

So, as you can see, flipping houses on a frugal budget is possible. Make sure that you learn as much as you can in the process and consider adding some feathers to your cap so you can significantly cut on labour costs.