4 Things To Look For When Buying a Property To Flip
So you’ve decided you want to start flipping houses. Good news, if done right, it can lead to a promising career and financial freedom. A lot of work goes into flipping a house, but you’ve done the research and are prepared to work hard. Now it’s time to finally choose a house to flip. But which one should you choose? Below are some tips and strategies that will help you pick the perfect house to flip.
This may be the most important aspect to consider when buying a house to flip. People want the best for their families; this includes living in the best neighborhood. When looking for a house, people will pay more money for a house in a great neighborhood. What makes a neighborhood great? Low-crime rate, highly-rated schools and a sense of community. While looking for a house to flip, look for places where you, yourself, would consider moving. Find the cheapest house in the best neighborhood. This is easier said than done, but your research and patience will pay off big time when you find the perfect house in a friendly neighborhood.
When looking at a house to flip, make sure to check the foundation! Is a major foundation repair fixable? Yes. But do you want to avoid it if you can? Again, yes. If you are flipping a house for the first time, I would highly advise working with houses that need foundation repair. It’s costly and can get out of hand very fast. You don’t need that added stress, so try and avoid repairing a foundation. Here are some basic signs that a house will need repairs to the foundation:
- Large cracks along the exterior
- Cracks in the floor
- Uneven surfaces
Inspect the house thoroughly before making an offer. Sometimes the previous owners will try and hide these major issues. For example, hiding large cracks on the floor by installing linoleum over them. If you can, hire someone to fully inspect the house. An inspector will be more knowledgeable on the repairs needed, which can save you money in the long-run.
The Kitchen and Bathroom
Both the kitchen and the bathroom are major selling points to potential buyers. Your chances of selling your flip will increase if you have an impressive kitchen and bathroom. If the house you are looking to flip already has a beautiful kitchen that just needs some minor updating, then you’ve hit the jackpot. Chances are though, this won’t happen. This may be where you’ll be spending most of your renovation budget. When reviewing the kitchen, look at the cabinets. Are they completely destroyed or do they just need to be refinished? How about the floor; does it need to be replaced or just refinished? Take a look at the appliances, do they need to be replaced? If so, consider spending some money on this. New appliances really pop and will catch the eye of potential buyers. Same goes for the bathroom. Consider updating the shower, faucets and toilet. This doesn’t need to cut into the budget too much. Think about just replacing the shower head, or the toilet lid/handle. Little updates like this look great and will cost you next to nothing.
If you buy a house with faulty plumbing it will set you back financially, and you will lose out on precious time. Look out for these possible plumbing issues.
- The Main Sewer. If the main sewer line is clogged, you’ve got a big problem. This could lead to cracks in the sewer line, which are a pain to fix. If you can, have a plumber do an inspection via camera so you clearly see if there are going to be issues.
- The Pipes. If possible, try and find out when the home was built before you buy it. If the house was built before 1986, you could have a problem. Lead pipes. As you probably know, lead can be toxic, and nothing will make potential buys run away like toxic water. So, either replace the pipes, or don’t buy the home.
- The Water Heater. If you are considering a house that needs a lot of work, make sure to check the water heater. Determine how old it is, if it needs to be replaced, and if it’s been leaking. If it’s been leaking, assess the damage. Is it rotting the wood? How much is it going to set you back? See what you can find and decide if the flip is going to be worth it.
Buying a home to flip involves a lot of thorough inspections, which can be very nerve-wracking. Most importantly though, go with your gut feeling. If you sense that something is wrong, don’t buy it. But, if you check off all the boxes and follow these guidelines, you’ll be on your way to flipping a house for profit. Prepare to work hard and don’t forget to be patient!