Glenside, PA · Member since 2013 · 6 posts · 1 vote
When looking for a flip-to-rent or flip-to-sell what are the key aspects to focus on as I walk through the property?
I understand some of the basics such as:
# of Beds, baths, and condition of both. Closets and there size.
Also understand I should look for water damage and structure damage. But I am new to this and really don't know what to look for in terms of structure damage or other types of damage that tend to suggest other damage that my not be noticeable until demolition day.
Also is it a smart idea to search for properties that can be transformed into more units than originally designed for? Or will I just find myself tied up in paperwork bleeding money as the house sits idle.
For example a single family home that with some creative designing can be turned into a multifamily home or a duplex with the size capability to transform into a triplex.
Miami, FL · Member since 2012 · 612 posts · 189 votes
13y
If you are flipping to resell then do not worry about adding units unless the conversion is really obvious. The holding period and costs could eat up your profit margin. The fast you resell, the greater the potential for a higher return.
Buying investment properties as a hold and rent strategy opens up the door to look for conversion properties. You need to have experience in this to make sure you do not lose your shirt. Conversion will open up a whole extra area of research (zoning, building codes, structural walls, permits, financing etc).
To protect your investment, make all your offers subject to a satisfactory inspection. Then either bring in a licensed contractor or hire a reputable home inspector to look for areas your inspection may have missed. Keep your eye open for evidence of mold and termite damage - two costly repair items.