It’s easy to draw basic conclusions about a potential flip house when you take a look at the outside and do a quick walk-through. But what are the critical things you need to examine closely before you’re fully committed? Here are some tips on how to effectively identify a good investment purchase.
One of the most important things to evaluate as you walk through a potential flip house is the flexibility of the floor plan. In many cases, you may be looking at an older home with lots of walls and smaller rooms, but don’t get discouraged by the existing layout. Think beyond the visual barriers and consider the potential of the space. Focus your scrutiny on the main living area and think about how you can re-work the space to have good sight lines. Will you be able to work with your contractors to develop a semi-open floor plan that gives buyers options to customize their space?
Any Major Damage or Structural Issues:
Foundation issues can mean expensive fixes, but some minor issues can be pretty easy and affordable to remedy. So how do you know how severe the problem is? You can bring in a structural inspector to take a look and give you a green, yellow, or red light on the state of the home’s foundation.
In addition to foundation issues, you need to look for any damage caused by forces of nature; smoke, water or fire. Not knowing there’s serious water damage hiding in the rafters can cause all kinds of problems when it comes time to start working on your flip. Make sure you get all the inspections you need to be confident that your purchase is in good shape at it’s core so you don’t end up surprised by bill bills from previously undetected issues.
The saying “better safe than sorry” has never been more true than it is when applied to pre-sale flip house inspections. Being thorough early on is the path to long-term success.