Tow quick questions for flippers

Windsor, CT · Member since 2016 · 20 posts · 0 votes

1. Do gutted homes offer good profit potential (in general)? I know it depends on the numbers, but I'm not sure how expensive it is to rebuild an inside., so generally speaking is it worth looking into?

2. When going through rehab properties, what should I ask when considering the property? For example, I know that I should always find out:

*if there is mold

*how old the roof is

*if there are liens or back taxes owed

What else should I specifically look for that could trip me up if I overlook it? This will be my first flip.

Thanks a ton!

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Clay SmithBusiness Member

Investor · Louisville, KY · Member since 2013 · 419 posts · 244 votes

10y

1) If I was a pin up in Playboy my poster would read, Turn Offs: gutted houses.

They just require more materials without adding resale value. They also require permits and can take longer to complete. Of course, my Turn Ons: Profit. This makes it worthwhile.

2) stay away from floodplains, attorneys/closing agents should find tax liens and you should buy title insurance. Look for cracks in exterior brick, unlevel floors, unlevel window frames...all signs of foundation issues.

Take note of the roof, are there black streaks or raised/missing shingles? Note the age of water heater, ac, hvac, and look for maxed out electric panels.

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Clay SmithBusiness Member
Investor · Louisville, KY · Member since 2013 · 419 posts · 244 votes
10y
1) If I was a pin up in Playboy my poster would read, Turn Offs: gutted houses.
They just require more materials without adding resale value. They also require permits and can take longer to complete. Of course, my Turn Ons: Profit. This makes it worthwhile.
2) stay away from floodplains, attorneys/closing agents should find tax liens and you should buy title insurance. Look for cracks in exterior brick, unlevel floors, unlevel window frames...all signs of foundation issues.
Take note of the roof, are there black streaks or raised/missing shingles? Note the age of water heater, ac, hvac, and look for maxed out electric panels.
LREI Property Management LLC4.6457 Reviews
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Shawn Thom
Investor · McKinney, TX · Member since 2012 · 588 posts · 224 votes
10y
on your first question, for your first flip, i'd stay awy from a full gut. I think it would be pretty easy to underestimate the amount of work and time it would take you.
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Scott Schultz
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y
Im gona take the Robert Kiyosaki approach to answering this one, Your question all be it a good one, its quite elementary, I think you should invest in education before you invest in a property. learn about construction, and costs, so you know what your looking at, Never just trust a contractor or inspector, ultimately your butt is on the line for their work.
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