Do You Do A Home Inspection On Your Flips?

Question

I was curious to see how many investors have a home inspector come in before purchasing their flip or rely on their contractors to spot big problems?

Rodney Marcantel · Answer

Inspectors are a good thing if you don't have experience inspecting yourself provided you're not under a time crunch (i.e. other bidders). However, they cost money and time. Learn to inspect and spot signs of key things like roof, foundation, termite or water damage from surface inspections. Bring a tape, a level, a flashlight, etc.

Christopher B. · Answer

Home inspectors, at least in TN, simply need a high school diploma and a couple hundred bucks to be certified so their value is debatable. I've only used an inspector once but I try to be thorough and budget conservatively. Only once have I missed a major issue, termites, but I don't think an inspector would have caught it either. So like others mentioned it comes down to your experience and confidence in yourself, it never hurts to have another set of eyes on a house.

Mark Wallis · Answer

Hi Colin,

In the beginning it's probably a good idea to use inspectors. Get yourself a few experts on your team...GC, electrician, plumber, termite/pest, home inspector etc. Try to shadow them and ask lots of questions. Use the internet to educate yourself in areas that you don't feel confident. When you sell your property the buyer will have an inspection and that will also be a learning experience for you.

I don't use an inspector when I purchase properties. However, I like to  have my GC, HVAC and maybe plumber or electrician view properties with  me if I have doubts.

Good luck and keep us posted on your progress.

Michael Noto · Answer

@Colin Smith If you do not have experience being able to identify repairs needed and most importantly what they will cost I would recommend using the due diligence period to your advantage and getting someone out there to inspect.

I see a lot of new investors that do not do this and are essentially done before they even get started.

Putting an inspection clause built into a flip property contract may make it harder to get your offer accepted in a lot of cases, but it so important that your first flip goes well so even if it takes you more time to get an offer accepted it is worth it IMO.

Taylor West · Answer

No flip experience, but I would recommend an inspector before closing.  Then during the rehab, if you know a contractor/inspector personally, have them come out and do a walk through with you when you can see the guts of the house (this person can also inspect the quality of work the actual construction personnel are doing and if they are cutting corners). Once the walk through is done, buy him a beer or dinner.  Beats relying on sub-contractors, etc.

Nicholas Crum · Answer

There is a clause that you can have in the contract, usually gives 10-15 days to have an inspection done at your cost. USE IT. Especially if you don't have the experience spotting the big ticket issues. The contract states you can back out of the deal for any reason during those 10-15 days.

Bill Hinshaw · Answer

I did on my first flip, which is still in progress. I wanted to know everything that was wrong with the house and don't quite have the experience or comfort level to do it myself. Here in Texas, I will have to disclose that inspection report when I sell. My intention is to turn this into a positive by going line by line through the inspection report and noting everything we fixed. Hopefully this will work in my favor.

Most of the rehabbers I have spoken to in this area do not do the inspection because of the disclosure requirement.

Do You Do A Home Inspection On Your Flips?

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