Hello I wanted to ask seasoned investors what they look for when buying a fix and flip or Brrrr or just a buy and hold. What major flaws do you look for? Do you have any good do and don't do pointers for a first or second property for new investors?
Biggest expenses that you might not see if you don't know a lot about repairs:
1. structural (look for sloping floors on the first floor or anywhere and then confirm in the basement - also exterior vertical cracks.
2. electrical (knob and tube is a fire hazard. Look up what it looks like. If throughout the whole house, the cost is big. Sometimes there are remnants only and it's not a big deal.)
3. sewer (always do a sewer inspection with a camera after contract acceptance. A new sewer where I am costs 15k. Old sewer pipes from house to city were made of clay and can break over time).
4. abandoned septic or oil tanks (environmental impact on leakage is huge)
There are plenty of others, but these three are major.
In some markets (mine, for instance) homes with major problems are the only ones a fix and flip investor has a chance of buying for a price that makes the flip worthwhile. If the place looks like it had been shelled by a howitzer, so much the better.