If you are interested in flipping houses, but have never done it before, it is important to take your time before buying the first house you want to flip. There are many factors that you have to consider when purchasing a house to flip. Before investing in a home, hire a contractor and take a tour of the home. Use the guide that follows to know what the contractor should check for while the two of you are walking through the home.
Check the Foundation
The first thing you will need to do is have a contractor go under the house and check the foundation for the home. Having to level a home or repair the foundation can be quite expensive. Also, if there is damage to the foundation, the contractor may be able to help assess what is causing it. A home that is located on soft, crumbling ground, will not be a good purchase, because it will be very difficult to make the foundation solid.
Check the Roof
You will next need to have the contractor check the roof of the home for you. If the roof has any damage, the contractor will need to inspect inside the attic to see if there is any water damage that will need to be repaired. If there is no major damage to the roof, the contractor can let you know if the shingles need to be replaced or not as well.
Check the Electrical Components
Next, you want to have an electrician come to check the electrical components of the home. You want to be sure that you know how much it will cost to fix, replace, or move the electrical elements of the home. If you plan to take down a wall, you will need to know if the outlets in the wall can be moved with ease.
Check the Piping
Finally, you want to be sure that the piping in the home is in good shape. Some older homes have lead pipes that can create a dangerous situation because the lead can seep into the drinking water. A plumber can determine if the pipes are in good condition or if you need to replace them to make the home livable.
Once you know what issues will need to be addressed and you can get a rough estimate for what the changes you want to make on the house will cost from the contractor. You can then figure out how much of a profit margin you need to have in the house. Have a real estate agent find comparable houses in the area that have sold recently to allow you to know how much you may be able to sell the house for when everything is finished. This will allow you to determine how much you can buy the house for and still make a profit after paying for the repairs that the contractor will need to do.
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