Calgary leads Canada in house flipping, but those who do it say approach with caution

You've likely watched it on reality TV. Someone buys a home, renovates and resells it for a profit.

It's known as house flipping and as it turns out, Alberta, particularly Calgary, leads the country at it.

Lara Mitchell has worked in real estate for nearly a decade and helped find her sister a home in August.

"But turns out, she didn't want it. So, now I'm flipping it," Mitchell said.

She bought the duplex for around $430,000 and is putting $50,000 into renovations.

She hopes to sell for around $550,000, turning a $70,000 profit.

"So far, we've changed the floors. We're going to paint it as well," Mitchell said.

Lara Mitchell has worked in real estate for nearly a decade. She's been house flipping for the past six years and says the market for it has never been hotter.

Mitchell's been flipping for the past six years and says the market for it has never been hotter.

In fact, Calgary leads the country.

According to stats from the Bank of Canada, around 7.6 per cent of homes purchased in the Calgary area were resold within the last 12 months – the highest of any major city in Canada.

Edmonton follows at five per cent, followed by Vancouver, Montreal, and Toronto at just one per cent.

"Toronto has a detached benchmark price of under $1.2 million, Vancouver $1.1 million and Calgary as of September has under $600,000, so what people are doing are move here, sell their house in Toronto and save up the half of what they sold it for and buy a bigger house here," Mitchell said.

"In other cities, what has happened is the price of housing has got so high, particularly in the metropolitan areas, that financially, to flip has become more challenging, particularly because the markets there have become slower," said Anne Alkok, Wahi broker.

Lara Mitchell has worked in real estate for nearly a decade. She's been house flipping for the past six years and says the market for it has never been hotter.

But experts say things are turning around faster in Alberta, thanks to the influx of people moving to the province in search of a more affordable home.

And when they get here, they want it to be turn-key ready.

"(It's) very busy, actually. We're fairly booked now – we're getting houses for the next year," said Neritan Gremshi, NLG Renos contractor.

Gremshi has been flipping homes for 20 years and says the demand for renovations is sky-high.

He hopes to turn a 20 per cent profit on a townhouse in the northwest that was stripped to the bones, but says in Calgary's competitive market, nothing is guaranteed.

"There's risk. For flipping, you've got to be careful for the budget, too. You could spend more," Gremshi said.

And with hidden risks, experienced flippers caution anyone planning a project to seek out a professional first.

"Be careful what you're buying. A lot of surprises behind the walls," Gremshi said.

"When you start opening walls, you start opening a can of worms that you need to fix," Mitchell said.