1. Buy Below Market Value — No Exceptions
In a recession, profit margins shrink. That means you absolutely must buy well below market value. Whether it’s a distressed seller, auction deal, or off-market opportunity, you should be aiming for at least 10–20% under market value.
2. Focus on Essential, Mid-Tier Housing
Forget luxury flips. In a downturn, the demand for high-end properties drops sharply. Instead, focus on bread-and-butter homes—think 2-3 bed family houses in solid, working-class or commuter areas. These sell faster and hold value better during economic uncertainty.
3. Do a Tight, Targeted Renovation
Don’t over-renovate. This is one of the biggest traps flippers fall into. During a recession, buyers aren’t looking for marble countertops—they’re looking for affordability and functionality.
- Stick to a neutral colour palette
- Focus on kitchen, bathroom, flooring, and curb appeal
- Avoid any upgrades that don’t increase resale value
Pro tip: Every dollar you spend must either increase value or help sell the property faster.
4. Know Your Numbers (and Then Add a Buffer)
Recessions can create delays—materials cost more, labour can be unpredictable, and sales can take longer. Build in contingencies to your budget and timelines.
Here’s what to factor in:
- Conservative resale value (don’t rely on appreciation)
- Higher-than-normal holding costs
- Buffer of 10–15% on your renovation budget
5. Work with the Right Team
Having a trustworthy power team makes all the difference. This includes:
- A reliable builder who sticks to timelines and budgets
- A local estate agent who understands shifting buyer demand
- A solicitor who can move quickly
6. Have Multiple Exit Strategies
A solid flip plan includes a Plan B. What if the market dips again? What if the property takes longer to sell?
Alternative exit strategies might include:
- Renting out the property (if the numbers work)
- Selling to another investor at a slight discount
- Lease option or rent-to-own models
Being flexible gives you the edge when markets are volatile.
7. Use the Power of Property Sourcing
If you want to flip during a recession but don’t have the time to hunt for deals, that’s where we come in. At SLG Property Deals, we source, package, and pre-qualify flipping opportunities for investors—so you get the upside without the legwork.
Final Thoughts
Yes, flipping in a recession requires sharper skills, tighter planning, and a more cautious approach. But the upside is real: less competition, more motivated sellers, and opportunities to buy assets at real discounts.
With the right strategy—and the right sourcing partner—your next successful flip could be the one you secure in the middle of a downturn.
Want to find your next flip?
Contact SLG Property Deals today and ask about our current off-market opportunities. Let’s turn the recession into your greatest investment advantage.