Flipping houses has long been portrayed as a fast track to wealth. But any seasoned renovator or real estate investor will tell you—it takes more than a coat of paint and an optimistic mindset. It takes research, realistic budgeting, and an eye for potential.

At FHG Contracting, we’ve helped homeowners and investors across Sherwood Park, Alberta and beyond bring tired homes back to life. With our expertise in low-VOC water-based staining, cabinetry refinishing, and custom on-site colour matching, we know what makes a property flip-worthy—and what makes it a money pit.

So how do you know if a property is worth flipping? Let’s dive into the real signs of a solid renovation investment—and the red flags to avoid.

1. Location: Still King (and Queen)

Even the most beautiful renovation won’t sell well in a bad neighbourhood. When assessing a property’s potential, look beyond the walls and consider the location. Ask:

• Is the area experiencing growth or revitalization?
• Are there good schools, parks, or amenities nearby?
• Is the crime rate low?
• Are neighbouring homes well-maintained?

Pro Tip: A modest home in a great neighbourhood has more flip potential than a large fixer-upper in a declining area.

2. The Right Price Point

Profit from a flip happens when you buy low and renovate smart. A general rule of thumb: look for properties priced 20–30% below market value. This allows room for:

• Renovation costs
• Unexpected repairs
• Carrying costs (mortgage, utilities, insurance)
• Selling fees (agent commissions, closing costs)

A smart investor works backwards—start with the expected resale value, subtract all costs, and see what’s left. If it’s not a decent return for your effort and risk, keep looking.

3. Cosmetic vs. Structural Fixes

Cosmetic fixes are faster, cheaper, and less risky. Look for homes with:

• Outdated kitchens and bathrooms
• Old paint or wallpaper
• Worn flooring
• Dated cabinetry

Avoid homes with major structural issues like foundation cracks, roof damage, or water intrusion unless you have significant experience and capital. These issues can quickly turn a flip into a flop.

At FHG Contracting, we specialize in cabinet refinishing and water-based staining, so giving a dated kitchen or bathroom a modern look doesn’t have to break the bank—or the environment.

4. Check the Comparable Sales ("Comps")

Before committing, look at recent sales of similar homes nearby—especially ones that have been renovated. This gives a realistic picture of your potential resale price. Ask your real estate agent for:

• Sold prices of updated homes in the same area
• Time on market
• Price-per-square-foot averages

This data helps you avoid over-renovating for the neighbourhood and ensures you price to sell quickly when the time comes.

5. Permits, Zoning & Legal Hurdles

Don’t skip this step. A property that seems like a bargain might come with red tape. Check:

• Zoning regulations (some areas limit short-term rentals or major alterations)
• Permit history (were past renovations properly approved?)
• Heritage status (some homes can’t be altered easily)

These can delay your timeline or add unexpected costs.

6. How Much Will It Cost to Renovate?

Here’s a general breakdown of average renovation costs in Alberta:

Average Renovation Costs in Alberta 🛠

• Kitchen Renovation: $25,000 – $60,000
• Bathroom Renovation: $12,000 – $30,000
• Full-Home Renovation: $100,000 – $250,000+
• Basement Development: $30,000 – $70,000
• Cabinet Refinishing: $2,500 – $8,000
• Interior Painting/Staining: $5,000 – $15,000

With FHG Contracting, you get reliable estimates and expert craftsmanship. We use low-VOC, eco-friendly water-based products that are safe for your family and future buyers—without sacrificing quality or finish.

7. Time is Money: How Long Will It Take?

Carrying costs add up. Every month your project isn’t sold means:

• Mortgage payments
• Property taxes
• Insurance
• Utility bills

If your renovation timeline is 3 months, budget for 5. Delays happen—even with the best crews. Build cushion into your budget and schedule.

8. Don’t Forget the Selling Costs

When your flip is ready for the market, you’ll still have expenses, such as:

• Realtor commissions (typically 5–6%)
• Legal fees
• Closing costs
• Minor touch-ups and staging

All these affect your final profit. Factor them in from day one.

9. Eco-Friendly Renovations Add Value

Today’s homebuyers are eco-conscious. Sustainable upgrades—like those offered by FHG Contracting—can increase buyer appeal. We specialize in:

• Low-VOC Water-Based Staining
• Cabinet Refinishing Instead of Replacement
• On-Site Custom Colour Matching to Reduce Waste

Buyers appreciate healthier indoor environments and lower environmental impact. It’s not just good for resale—it’s good for everyone.

10. Get the Right Team

Your success depends on the people you hire. Choose a contractor who:

• Communicates clearly and transparently
• Has a proven track record
• Is licensed, insured, and experienced in renovations

At FHG Contracting, we’ve built a reputation in Sherwood Park, Alberta, by delivering beautiful, eco-conscious finishes—on time and on budget. Whether you’re flipping a house or improving your forever home, we treat every project with the same attention to detail and care.

📞 Ready to Flip with Confidence?

Flipping can be rewarding—but only if you go in with the right plan, team, and expectations.

If you’re considering a renovation investment and want a contractor who values transparency, quality, and sustainability, we’d love to help you bring it to life.

✅ FHG Contracting is your local renovation partner in Sherwood Park, Alberta (T8H 0Z7). We specialize in:

• Water-based low-VOC staining
• Cabinet refinishing
• On-site colour matching
• Interior finishing projects big and small

👉 To Get Started:

📞 Call us at 1-780-934-4115

📧 Or email us at info@fhgcontracting.com

Let’s turn your investment into something truly beautiful—and profitable.