Regardless of whether you’re a first time flipper or you’ve become a seasoned veteran, there’s always a chance that the property you’ve got your eye on may not be all it seems to be. What may seem like a fantastic property could turn out to be the house from hell, especially if you don’t know what to look for when having inspections performed. Below are some tips that will help ensure that your next fix and flip project is the success you intended it to be.
Property Inspections are your Friend
Before planning to lift the first paintbrush or remove that carpeting, it’s crucial to have a professional property inspection performed. This will help determine whether there are any serious structural, electrical, or plumbing problems that could be too costly to repair.
Start with a Detailed Scope of Work
If you’re going to be using contractors to do the work, it’s crucial to start off with a detailed list of everything that needs to be done. When doing this, experts recommend adding prices for each line item as well because it will allow you to see what can afford to be done and what may need to be skipped.
Improvements must Fit with the Neighborhood
Resist the urge to go trendy when completing fix and flip projects. Trends in materials, colors, and finishes come and go quite quickly and personal tastes vary substantially where decorating is concerned – although you may think a specific color or unique fixture looks great, it doesn’t mean that potential buyers would agree.
A good way to see what fits with the rest of the neighborhood will be visiting other show homes in the area. However, if this isn’t possible, opt for neutral colors and fixtures.
Avoid Properties with Roof Problems
Although a specific property may check all of the boxes with regards to what you’re looking for in a fix and flip situation, it should be avoided like the plague if any roofing defects are found. In most cases, these end up becoming more involved and costly to address and repair than planned – not an ideal situation for a fix and flip property.
Cut Costs on Materials Instead of Labor
Regardless of whether you’ll be doing the improvement projects yourself or hiring one or more contractors to finish the work, it’s crucial to ensure that the best possible workmanship is provided. While it’s possible to obtain materials at more affordable prices that won’t look any different from their costlier counterparts, cheap labor will result in a poorly finished end product that could be impossible to sell.
Sourcing and obtaining the right financing for your next fix and flip project may seem like a challenge. However, this need not be the case when working with us. Our team will be able to provide you with the advice you need regarding the size of the loan you could qualify for and what the repayment terms would be. Contact us today to find out more.