You usually don’t hear people talk about the “hidden” costs of moving houses, but about how much money they made.
“And we didn’t have to do much either!” you’ll hear them say.
While there are jewels being tossed into the air that do indeed land in people’s laps, the reality is that those tosses are few and far between. If you’re considering flipping, you’ll no doubt want to do it with a lot of enthusiasm, but also with a healthy dose of caution. Learning to “read” homes when you inspect them before you buy will help you see more clearly what possible repairs might be needed to make the home market-ready. Failing to heed certain warning signs of structural problems could mean the difference between making or losing money altogether.
If you’re relatively inexperienced at flipping, or thinking about taking your first flip, pay attention to what the house is “telling” you. You might go in thinking you’ll make a lot of money, only to spend the profits on major repairs. Remember, in many cases, you are buying properties in foreclosure, properties with tax liens against you, etc. So understand that you are buying the property. How is itwars and all.
Some important repair signs to watch for include:
Basement walls leaking. It could be very expensive to waterproof a base and leave it completely dry.
Evidence of mold anywhere in the house, particularly in the bathroom, kitchen, basement, and basements. This means that water is entering the house from somewhere.
A corrugated roof. If you notice that the roof line has a slight waviness, it could be due to deterioration of the structural support and foundation. Also, the condition of the shingles and flashing could mean removing the old roof and installing a new one.
Sunken floor. Does the floor have a noticeable sag? If so, there could be serious problems with not only deteriorating floor joists, but deeper foundation and structural support issues as well.
Strong smell of pet odor on the floor. It is not a big expense if there are no hardwood floors. But if there are hardwood floors and you want them used, you should definitely sand and refinish them.
Weak and/or deteriorated structural wall support due to termite infestation or rotten wood structure. You can’t see what’s behind drywall or plaster, so your best bet is to look for water stains, bowed walls, and sagging ceilings with cracked walls for evidence.
Look for evidence of asbestos. You’ll see it in the form of shingle-style siding, plumbing and duct wrap, tile flooring, and attic insulation. You’ll recognize it by its old, yellow, flaky, stringy texture. Asbestos removal can be expensive, and due to environmental concerns, you should use only experienced removal companies.
Just like asbestos, be on the lookout for lead paint, too. Removal can be potentially expensive due to the extent to which it would have to protect people from exposure and the cost of replacing/treating any contaminated areas.
Having this particular mindset of heightened awareness makes good business sense when evaluating any property. Consult with a professional, such as a general contractor or real estate agent, and ask them to help you assess possible repairs and related costs. When you have all the facts and figures in front of you, can you make an informed decision? When you do, in fact, submit a bid, your price will reflect any necessary repair costs.
