A lot of TV shows make flipping a house look like a simple way to make a quick buck. But it can turn into a nightmare very quickly. Click through for 3 things to look out for when deciding if you should flip a home.
Contrary to popular belief, flipping a house is an arduous process filled with a rollercoaster of emotions along the way. As a buyer of a potential flip, you need to ensure that you do a meticulous inspection when previewing the property prior to purchase. When a buyer does the initial walkthrough in a home, there are red flags that will pop up, and all you have to do is look around to spot them! Here are 3 warning signs that a home is not in a good condition to flip.
1. Structural Flaws
Curb appeal is everything. It's the first thing you see when you drive up to a house. During the first walk-around of the outside of the home, be sure to check if there are any cracks in the foundation. This can be a sign of trouble to come. If structural issues are not taken care of properly, it can prohibit a buyer from reselling the property.
Be sure to have an engineer come and certify the property is structurally sound:
- A slanting floor can also be a telltale sign of foundational issues.
- Some slants, if not major, can be remedied easily and won't take up a big chunk of your budget.
- A roof can be a costly repair, so ensure a roofer inspects it to make sure it will pass inspection when under contract.
2. Plumbing and Water Damage Issues
Most plumbing and water damage is easily overlooked, however, if repairs are needed, these can eat up a significant portion of your flipping budget. To avoid plumbing and water damage, check for spots on the walls that look discolored and feel the walls to see if they’re soft or mushy. If you see any of these issues, call an inspector immediately to check if there is any invisible further damage. These projects are not only expensive to fix, but can also be extremely time-consuming.
3. Recurring Toxin Issues
Upon the initial walkthrough, you will be able to see signs of any toxin issues. Toxin issues can be anything from old houses with asbestos in the walls, mold from water damage to a vermin issue. All of these pose serious threats to a buyer because correcting them is expensive.
Vermin issues can be extremely destructive both externally and internally. Such vermins include mice, rats or termites.
Be sure to look long and hard at a property before investing. If any of these warning signs pop up, you know to be cautious.