Hi everyone! I just got my first loan approved and am about to flip my first house with some guidance from another investor. Before I go into it, I just wanted to know if anyone had some major DO/DON'TS when it came to choosing a property? Is there anything I should look for specifically before buying the property to flip? Roofing/Plumbing issues? Location obviously? Is there anything you see when looking for a property that makes you immediately say YES or NO? Thanks!!
Make sure your not buying knob and tube . Replacing is a must and can be costly so if it’s present you better factor it in !!!
My first house was a full gut. Roof, plumbing, electric, hvac, windows, new floorplan, etc. Everyones personality is different so I don't believe there is a standard type if rehab you should look for. If the numbers make sense go for it.
The biggest thing I'd look for is area. Make sure you are in an area that can support your rehab. Every new investor I meet, especially wholesalers, are always finding cheap properties on crappy streets and trying to pass them off as deals.
Have to agree with all the comments above. @Charlie DiLisio Nailing the ARV is the most important thing, from there you can work backwards. Then comes estimating the rehab, I would suggest reading The Book on Flipping Houses and The Book on Estimating Rehab Costs by J Scott if you're just getting started. Next is the location, make sure its in a desirable location that people are looking to buy in as @Christopher B. suggested.
Last, ALWAYS ALWAYS run your own numbers! The BP fix and flip calculator is great for that. Sometimes people try and tell you the rehab cost and what the ARV is. 9 times out of 10, I disagree. Hope this helps! If you ever want to reach out feel free to PM me.
Hi Jeff, if you find a house built in 1970 or older, be prepare for higher repair cost and local building codes.