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Finding a property for sale that is in need of renovation can be a hard task, but finding the right property at the right price is the most essential part of property development. Remember that at the end of the day you are looking to make a profit, and that will come if you buy the right property, so before you spend months working hard on a project, it is worth spending your time finding the right opportunity.

Auctions have become a popular way to sell properties that aren't in pristine condition. Most properties that sell at auction have something wrong with them - either it is obviously in need of some renovation, or there is some legal issue that needs to be dealt with.

However, finding properties at auction isn't for everyone. You need to do all the groundwork before hand - have your conveyancing done, and arrange your finance, which can include paying for a valuation. If you get outbid at the auction, then the money spent on investigating a property has gone. If there are several properties that you miss out on, this can build up to a substantial amount of money spent without getting anything in return.

Using the more traditional method of buying a property using an estate agent can take longer, but doesn't have the same pitfalls as buying at auction. You need to go through the phone book and find all the estate agents in the area you are interested in, and then telephone them all. Explain you are looking for a renovation project and the budget you have to buy a place. Don't get put off by the lack of property available, or by the agents trying to sell you something that is clearly unsuitable for you. You should telephone all the agents regularly as right property could come onto the market at any time.

The internet is also a place where you can find properties for sale, there are lots of websites with properties for sale you can trawl through, or there are specialist websites that list properties for sale that are in need of renovation.

Once you have found the right property you need to agree a price. Think carefully about how much the house could be sold for once the work is completed, how much you will need to spend on doing the work, how long it will take and how much you will need to spend in fees and financing.

As a general rule of thumb, double the amount you think you need to spend and double the amount of time you think it's going to take. This may give you a closer figure to the final budget than your original figures, and if you end up spending less then that can only be a good thing to your profit.

Once you have calculated all your costs, and factored in the profit you are looking for, then you have a fair idea about how much you can spend on a particular property.

House hunting can be a tedious task, but using the Internet from the comfort of your home can help you find your ideal renovation project.