House Flipping – Become  Aware Of "Hidden" Repairs

House Flipping – Become Aware Of "Hidden" Repairs

You usually don’t hear people talking about “hidden” costs when flipping houses, rather, you hear about how much money they made.

“And we really didn’t have to do much either!”, you’ll hear them say.

While there are flipping jewels that do indeed fall into people’s laps, the reality is that those flips are few and far between. If you’re considering flipping, you certainly want to go into it with a lot of enthusiasm, but with a healthy measure of caution in addition. Learning to “read” houses when inspecting them before buying will help you see more clearly what possible repairs might be needed to make the house ready for the market. Not paying attention to certain warning signs of structural problems could average the difference of making, or losing money altogether.

If you’re comparatively inexperienced at flipping, or considering your first flip, pay attention to what the house is “telling you”. You could go into it thinking you will make some great money, only to use any profits on major repairs. Remember, in many flips, you are buying foreclosure character, character with tax liens against them, etc. So, understand that you are buying the character as is, warts and all.

Some major repair signs to be on the lookout for, are the following:

  • Leaky basement walls. It could get very expensive to waterproof a basement and make it completely dry.
  • Evidence of mold anywhere in the house, particularly in bathroom, kitchen, basement, and crawl spaces. This method water is coming into the house from somewhere.
  • A wavy roof. If you notice the roofline has a slight wave to it, it might be due to deteriorating structural sustain and underlayment. Also, the condition of the shingles and flashing could average stripping away the old roof and installing a new one.
  • Sagging floor. Does the floor have noticeable sag to it? If so, there might be serious problems with not only deteriorating floor joists, but deeper foundation and structural sustain problems in addition.
  • Strong smell of pet odor in the flooring. Not a huge expense if hardwood floors don’t exist. But if there is hardwood flooring and you want it utilized, you should definitely have the floors sanded and refinished.
  • ineffective and/or deteriorating wall structural sustain due to termite infestation or rotted wood framing. You can’t see what’s behind drywall or plaster, so the best you can do is look for water stains, bowed walls, and sagging ceilings with cracked walls as evidence.
  • Look for evidence of asbestos. You’ll see it in the form of shingle-style exterior siding, insulating wrap for plumbing and ducts, tile flooring, and attic insulation. You will know it because of it’s old, yellow-coloring and flaky, fibrous texture. Asbestos removal can be an expensive, and because of environmental concerns, you should use only experienced removal companies.
  • Just like asbestos, be on the lookout for rule paint in addition. Removal can be potentially expensive to tackle because of the extent with which you would have to safeguard people from exposure, and the cost to replace/treat any polluted areas.
  • Having this particular increased-awareness mindset makes good business sense when evaluating any piece of character. Consult with a specialized such as a general contractor or realtor and have them help you estimate any possible repairs and related costs. When you have all of the facts and figures in front of you, can you then make an informed decision. When you do, in fact, submit a bid, you’re price will mirror any necessary repair expense.

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