Flipping properties is a great way to make substantial amounts of money in a short-time period. However, the first step is the most challenging—finding a property that you can practically renovate.
Needless to say, flipping properties requires intensive planning, research and analysis of the financial numbers. Before purchasing a distressed property, you must check its condition to ensure you can adequate returns on your investment.
Fix and flip investors deal with older properties, typically over 10 years of age. Conducting a thorough inspection of the property is a crucial part of the flipping process as it can help you determine how much budget you need to renovate it. Remember that the older the property, the more upgrades it may need, which means high repair and renovation costs.
When inspecting the condition of a 10-plus year old fix and flip property, here are some important things to focus on:
Start the inspection process with the most visible part of the house i.e. the roof. A good looking roof indicates that the property has been maintained. It also has a significant impact on the curb appeal of the property.
Are there any missing, broken or damaged shingles and flashings on the roof? Over the course of time, heavy storms, rain, snow, heat as well as wear and tear can take a toll on roofs.
Along with causing water leaks, mold and mildew, a damaged or poor quality roof can be dangerous. Damp spots along the fireplace are a common sign of a leaky roof.
In addition to the roof, pay attention to the overall architecture of the property as well as surrounding areas, including trees, yard and landscape. Remember, first impressions matter a lot when it comes to selling a home.
Windows and Doors
Make sure that all the doors, including the garage and front doors are working properly. Also, inefficient or outdated windows can adversely affect the resale value of a property. Invest in energy-efficient windows and modern doors to enhance your property’s market attractiveness.
While electrical upgrades are expensive, it is necessary to ensure the safety of the new dwellers.
For inspecting and bringing your fix and flip property’s electrical system (main fuse box, wiring, etc.) up to current standards, hire a licensed electrician.
From water stains to a leaking toilet and malfunctioning septic tanks, older properties may have plumbing issues. Hire a professional plumber to inspect and update your property’s plumbing system, including fixtures and pipes.
Does the property have any structural issues? If you see cracks in the foundation, you will require foundation repairs.
Coupled with the age, condition and location of a property, the condition of the real estate market also affect its sale value. If you are currently seeking fix and flip funding or want to learn more about property flipping , check out our nationwide fix and flip program.