Low mortgage rates may just be the sign you are looking for to get into the house flipping business or to do the activity for your own dream house. However, with any industry, there are risks to look out for, and careful steps to follow so that you can minimize your risk. Here are some important parts of an inspection you should include in your house flipping strategy to improve your chances of making a profit:
Checking the Perimeter
You have to make sure that the house you purchase is safe for whoever is about to live in it when you are done with the project. By checking the perimeter for any security issues, and ensuring that the area cannot be penetrated by any uninvited outsiders, you can provide prospective house owners the comfort of feeling safe in their future homes. One way to better assure clients regarding your prioritization of their security, you can hire professionals for a residential fence installation to make sure that the perimeter is up-to-date.
Aside from what is present on the property, you should also research the neighborhood for any potential positives you can sell during a house tour. Although your real estate agent might already have that information, you can add a more personal touch by getting to know the people that live around the area. They could share some anecdotes for you to relay to people who are planning to move into the community. This can make them feel more at home and it could push them toward putting an offer on the table.
Before you buy a home for a house flip, always check for any infestations on the property. If it is a carpeted home, there is a good chance of a flea infestation being sprung onto you and your contractors. When you conduct an inspection, you have to be on the lookout for any damage that can affect your profit margins during the flip. After all, when you sell the house, you want it to be as pristine as possible so that the prospective buyer has no reason to find any room for haggling and you can maximize your income in the end.
Another sign of an infestation is animal droppings on the property, no matter how big or small. You can get a team to take care of the problem before you start your reconstruction of the home so that it is safe for your contractors to work. When you perform your inspection, you should wear personal protective equipment to minimize the chances of anyone falling ill while working.
Finding molds in the home is a definitive reason to start wearing personal protective equipment for any future house inspections. The tiny spores can get into your lungs and cause illnesses so it would be best to take the necessary precautions. Any extra care taken can be the difference between having to pay for hospital bills and your profit once the house is sold.
Covering up any molds is also not an option. You have to be able to look your clients in the face and assure them that they will be buying into a clean and safe home. Molds also tend to violate some building codes so check any local guidelines to make sure that you and your contractors are following the law. In case there are any mishaps in the future, it can hurt the relationship between you and the buyer.
Weighing the Cost
At a glance, it can be difficult to have a clear idea of how much everything will cost. It will take several trips in and around the house for you to make a good estimate. Before you buy the condemned property, you must weigh the cost of repairs and any other additional improvements you want to make against the actual value of the property once you are done. It may not be easy to provide your own accurate valuation of the property after the flip so have a real estate agent with you as you scout potential rehabilitation projects. In this way, you can reduce the chances of losing money on a flip.
House flipping is fun but also challenging. It is important to remind yourself of the money that is at stake and the reasons why you decided to start a challenge as expensive as this. So, before you buy, make these careful observations while you do the house tour for you to make a profit and build a safe home.