What should I look for?

Question

When viewing property for a potential fix and flip, what questions should I ask? What should I look for? Ex. Septic, Structure, etc...

Troy Sheets · Answer

What's rule of 5?

As far as what to ask or watch out for, quite a bit will differ based on location, age and type of house, etc. I may worry about private sewer vs. public but never see a septic system being that I'm in the city. A better question might be, "I'm looking at buying a 3-unit house built in 1920 in X city, what should I look out for?".

In my area the most likely issue you'd run into that could crush your deal would be zoning, believe it or not. I see quite a few 2-4 unit MFH's that are not properly zoned or permitted and will likely never be allowed even if they've been used that way (unpermitted) for 50 years. You as the new owner will go to get a rental license (first one the property has ever had applied for) for your triplex and that's when you find out you bought a SFH, that's zoned as a SFH and will likely never be allowed to be used as a MFH, and you have little recourse other than a drawn out process (battle) with neighbors, zoning board, city licensing/permitting agencies...and your life now really sucks.

I guess the moral is, ask better questions.

Sam Besong · Answer

@Michinori Kaneko i’ve learned to ask about septic vs sewer, hoa fees in terms of buying a condo, checking to see if there’s enough space for a potential extra room, and rule of 5s in terms of estimating repair costs. i’ve been listening to bigger podcasts and reading forum posts continually, but like the old saying goes, “you don’t know what you don’t know”

just looking for some advice from those who are experienced

Michinori Kaneko · Answer

@Sam Besong what questions have you already asked? have you done your research? your question sounds like you haven't put much time or thought into your investing. I feel not many people will take their time to help you if you are not willing to put your time in yourself before you come and ask the questions on the forum.  just my 2 cents.