Fixer-upper, flippers, fix and flip... whatever you may call it. Investors venturing into this type of investment have to be certain with their decisions when it comes to purchasing the property they've been eyeing for months or so. Some would ideally say, flipping a house is all fun and games. Most likely, some would think flipping a house is for everyone. But the reality of it is, house flipping is not always smooth sailing. There are days where things won't go as planned, but there are just some of those days...
As an investor who's been in the business for several years, I know I've said this multiple times even on my videos, I am serious when I say I am taking all the time to gather information on the property I want to flip. It's how you secure your investment. It's how you do business. Just as how complex flipping a house can get, I ensure being on top of my game.
How can house flipping be a flop? Is it when you missed checking the mechanicals of the property, and you focus more on the aesthetics? Is it when you consider the size more as you think the smaller the property, the lesser the expenses? Or, is it when you focus more on how you can save so you flip it yourself?
When I had my first flip property, it was not as good as how I imagined it would be, but it was a good start. And being in the business for years, I have some of the key points I know will help you, as you venture into house flipping.
What to look out for during a walk-through?
By this time, you already have your comparable market analysis of the properties in the hood. You have visited some of those, looked into each variable, and analyzed how each property differs. By the way, you can do project walks with your designer and/or architect and have an initial look at the property. A walk-through with your designer is an opportunity to check the property and picture out how it will look like initially.
To help you come up with better planning and execution, here are some of the tips you may use:
1. Check the mechanicals
Not all flippers pay much attention to the mechanicals the first time they visit the property. Most of them focus more on the property condition such as structural damages, exterior or interior wall condition, the size, space for additional baths or rooms, etc. You'll get there. You have all the time to figure out how you would want to redesign the property. But the real score here is you'll end up spending more if you fail to focus on your mechanicals. Abandoned houses always have room for damaged waste lines, broken heaters, defective air-conditioning units, disconnected and malfunctioned electrical wires, etc. The reality of it is, flippers spend more on mechanicals.
2. Structural Damages
Checking the structural damages will always be on the list. Damaged exterior/interior walls, ceiling, flooring are some of the areas to focus on. You shouldn't pay less attention to structural damages just because you want to save. A small crack on the wall will cost you more if ignored. Better keep an eye on everything.
3. Architectural Design/Layout
Your comparable market analysis will be your basis on how you will flip your property. You may or may not add space for additional rooms or baths. Before visiting the property, initially, you've come up with plans already. You know first hand where to cut or add space. A property visit will just give you an actual overview of how you will execute your plan. From the living space to the kitchen, baths to rooms. That's why it's best to bring your designer/architect with you. We'll never know if a better plan awaits you once you get there.
These are just some of the most important areas to consider when viewing a property. To those aspiring flippers, there's no harm in trying. It's not about how long you've known house flipping is, or how many trainings you've been into. It's how you set your plan, how you stick to it, and how you execute it. As a flipper, I started from scratch and experience brought me to where I am now. Flipping a house is fulfilling if done correctly, but it can be exhausting if not. Flipping a house is like viewing a property, if you know what you want to see, you'll know where you are going.