If you can manage to find a home listed for less than what it is worth, it is probably safe to say that you are going to have to use some elbow grease to get it up to standard.
Welcome to the world of house flipping, where buyers purchase distressed real estate, fix it up, and then make a profit.
For the most part, house flipping consists of making any necessary repairs and then renovating properties to make them look more aesthetically pleasing.
However, there are three big areas that house flippers should also be on the lookout for:
1. Structural and Foundation Issues
A lot of the repairs that you will end up making to distressed properties are going to be cosmetic in nature.
Replacing broken windows, refinishing hardwood floors, and replacing kitchen cabinets can make a shabby property look like new.
Structural issues however go much deeper, and can impact the integrity of the property itself.
Always have your properties inspected for potential foundation and structural issues before beginning any type of repair work. This will make the entire home renovation process much cheaper in the end.
2. Lead Paint and Other Hazardous Waste
Another consideration for house flippers is the unknown that resides inside of a home.
A property can look perfectly fine, but a closer look could reveal toxic and hazardous waste.
Removing hazardous material is a precarious job that is best suited for trained professionals. Hazard waste removal and abatement companies can remove lead paint, mold, and other toxic materials, leaving you with a property that is safe for habitation.
Utilizing their services will help you to get your new property fixed up and ready to be put on the market faster.
3. Animal Infestations and Squatters
After a house has been abandoned for a time, there is no telling who or what might get in.
Although you have just purchased the property, it might not be empty when you get it. Anyone interested in house flipping will have to get out all of the critters, and potentially, human occupants, before embarking on any type of renovations or repairs.
Eliminating pests is usually straight forward, but evicting squatters is a little trickier. Try driving by the property at night and see if there is any activity.
Eventually, you will have to go in and see if anyone is there. Check your local eviction laws if your verbal requests are not honored.
When you get into the house flipping market, you have to think about more than just the purchase price of a property.
It will also cost money to make all repairs, and if you don’t outright buy it in cash, you will have loan payments due.
This is why it is in the best interest of property owners to complete their home renovations quickly. Within a matter of a few months, you can buy, renovate and repair, list, and then sell your property.
As soon as it is complete, you can happily move on to your next house flipping project.