Are you flipping serious?

As the art of flipping houses has been glorified on the Boob Tube, it appears there are crowds of experts looking to earn a quick buck. With that quick buck comes a little recklessness and haphazard decisions as to what to update and what not to in order to cut the cost of improvements and receive a higher return on investment (ROI). As a local investor, Broker and one that has learned a lot of hard lessons with Zen and the Art of Flipping, I believe I have earned my rank as a voice on what to do and what not to do when it comes to flipping a house. I will attempt to give some insight on three of the most common mistakes I have seen in flipping homes.

Don't get in HOT WATER for cutting unnecessary corners!

When wearing my Broker hat out showing homes, I will occasionally come across a flip home where the rehabber chose to leave the existing hot water tank. That is fine, except that it looked like it might have supplied hot water for the Brady Bunch some 40 years ago. This "cut corner” instantly gets a loud "Come ON Wo/man"from me as I apologize for this poor quacksmanship. Spend the extra $500 and ensure the next home buyer can take a hot shower and not be pestered by Marcia, Marcia, Marcia to save her some hot water!

You need an OUTLET for your frustrations if you bought the house too high!

Often times when a "fix & flipper" updates the electrical system, the outlets tend to get left "out".The most common left "outlet" are the GFCI's, which are to be installed within six feet of a water source. Now I know the code changes about as often as a politician changes his/her mind; but if you don't want to get hit by an appraiser for a buyer with any government backed loan, it's best to keep up with the code and implement it where practical.

If a WINDOW of opportunity appears don’t pull down the shade!

Whether to replace the windows of a home or not can be a tough call sometimes. Often times the window glass will be double-pane, sealed with no moisture between the glass, and yet be stained yellow from years of the Marlboro Man chain smoking his morning cigarette over a cup of hot java and morning comic strip. Actually, with a little elbow grease these can be used and would be a worthy cut to cost. However, if the windows are metal or have painted frames with paint chips as old as our Great State, don’t be “shady” and pass the “buck” to the next buyer, replace them!

Serious “Fix and Flippers” already know these rules and seek to pass on an outstanding product to the next homeowner and something to be proud to put their name to. We can look at hot water tanks, outlets and windows and within seconds know whether or not they need to be replaced, the cost it will take, and if you are a Rain Man of Real Estate Investing like me, know the cost difference between Lowe's and Home Depot. If you are starting out in the business and wish to be successful in the business, take heed to these tips and ask yourself how flipping-serious are you?

**This is no endorsement for Lowes and Home Depot. When practical, I always try to send business locally first!