Most common unknowns while flipping

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Hey flippers, what are the most common unknowns you've come across while flipping and how much of your budget did it take up?

Originally posted by @Kanwar Sodhi :

Hey flippers, what are the most common unknowns you've come across while flipping and how much of your budget did it take up?

 According to the National Assoc of Realtors the average flip takes 182 days. 

The most common unknowns are the ones that you don’t know yet. While asking this question might seem to you as an easy way to avoid costs, i’d suggest you take more time to do your research instead of jumping around which stone to step on a river, i’d say build a bridge. RE has expensive lessons, and most if they have to pay for it, quit.

Unknown #1: Time selecting finishes. I would start with some kind of template: look here or online about colors that work, flooring and lines of lights and fixtures that will remain as thoughtless decision in the finish selection process. It is extremely helpful for your contractor to know all of this up front. Unknown #2: Here in Charleston it is not knowing what is under the house! Have a inspector come by and do a pre-purchase inspection. I do it by the hour and it usually runs $100 for 1.5hrs. This helps know if it is a major foundation issue or just anything that the inspector will find when you go to sell. Unknown #3: Knowing what kind of selections for your ARV market. Although granite is cheap these days, you don't always have to have the extra costs in when the buyer doesn't necessarily card if it is granite or Formica. Message me if you ever want to develop for Q&A

The unknowns I have had to learn the hard way are everything you can not see using one point in time (pre buy inspection); i.e. subfloor wood rot in your crawlspace that no one caught (even though 4 people were down there at different times), permits (have people pulled them in the past for big things that were done on the property), septic drain lines (septic tank was amazing, but the drain lines were faulty had to get a permit and get the city to do an inspection and called for a 7,500 repair and partial mound system to be installed....when the original inspection and pump was aok because it was a dry time of year)...., speaking of time of year, a HVAC unit that was inspected in the winter and the differential was AOK, was inspected for a closing in the summer and had to be completely replaced (4k-that I wasn't supposed to have to spend), drainage issues on the property and water body really inspects for drainage issues prior to closing, especially when it's a dryer time of year, then BOOM the rain hits and water is coming in over the foundation because water is not being routed correctly around the house. Look for everything behind walls, in attics, under floors.....those things you can't see. Be at your inspection ask questions and get not be afraid to ask questions and be clear on what you are purchasing. You can fix almost everything, but you have to know about it first :) Best of luck!

Good answers above on some of the big items. Also common is just all the little stuff that ends up being a long list and adding up. I figure $3-5k just for small misc items that I didn't spot going in.

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