How Do I Avoid Major Mistakes When Flipping a Home?
Contrary to popular belief and what you see on TV, flipping a house is different process filled with many pitfalls along the way. As a buyer of a potential flip, you need to make sure that you do a thorough inspection when previewing the property prior to purchase. When a potential buyer does the first walkthrough in a home, there usually are red flags that will pop up, and all you have to do is look around to spot them! Here are 3 warning signs that a home is not a good candidate to flip.
Curb appeal is everything. It’s the first thing you see when you drive up to a house. During the first walk-around of the exterior of the home, be sure to check if there are any cracks in the foundation. This can be a sign of trouble to come. If structural issues are not taken care of properly, it can prohibit a buyer from reselling the property or cost a lot of money to repair.
Be sure to hire a qualified engineer to certify that the property is structurally sound:
A floor that is not level can also be a telltale sign of foundational issues.
Some slants, if not major, can be remedied easily and won’t take up a big portion of your rehab budget.
A roof can be a costly repair, so make sure a roofer inspects it to make sure it will pass inspection when under contract and that there is not any rot in the plywood.
Plumbing and Water Damage Issues
Most plumbing and water damage are difficult to detect, however, if repairs are needed, these can eat up a significant portion of your flipping budget. To avoid plumbing and water damage, check for spots on the walls that look discolored and feel the walls to see if they’re soft or mushy or use a humidity detector to be sure. If you see any of these issues, call an experienced inspector immediately to check if there is any invisible further damage. These projects are not only expensive to fix but can also be extremely time-consuming.
Upon the initial walkthrough, you should be able to see signs of any toxin issues. Toxin issues can be anything from old houses with asbestos in the walls, mold from water damage to a vermin issue. All these pose serious threats to a buyer because correcting them is expensive.
Vermin issues can be extremely destructive both externally and internally. Such vermin’s include mice, rats or termites.
Be sure to look long and hard at a property before investing. If any of these warning signs pop up, you know to be cautious.
If you want more tips to a successful flip, reach out to me today!
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