When you're picking up a property to quickly fix and flip, you want to be sure that you aren't running into more problems than you can fix.
Some potential problems with a fix and flip house are easy to overlook on your first walk-through.
Make sure you take a second look to avoid more serious problems.
Problem #1: Foundation Issues
You don't want to get into fixing foundation problems when you pick a house to fix up and flip. Foundation issues are expensive, time-consuming, and often difficult to fully repair. If you find a house with foundation problems, it's definitely one you should pass on.
Problem #2: Mold Issues
Mold issues are hard to get rid of–not to mention expensive! You don't just have to clean out the mold itself. You also have to understand where it's coming from and completely remove the problem. Don't fall into this trap! Check out all the crevices and closets for signs of mold. Note any home that has dehumidifiers running on a constant basis, which can be a sign of excessive moisture.
Problem #3: Sewer and Drainage Issues
If you're looking at a home that has serious drainage issues, leaks, or problems with the sewer, back away quickly! These are the types of problems you really don't want to get into. Make sure that the water to the property is turned on to see any kind of drainage issues and that you've had the sewer inspected (if applicable) before making a final decision about the property.
Problem #4: “Unique” Houses
Properties that have been sitting on the market for too long without so much as a bite have often been there for a reason, and you might be biting off more than you can chew if you decide to acquire the property and fix it up. Properties in the middle of nowhere, odd construction, or other “unique” fixtures are better avoided by fix and flip enthusiasts.
Picking a house to fix and flip can be a challenge, but it's also very rewarding when done right. By avoiding some of these key pitfalls, you can help increase your odds of success.
Know of any other “problem property” scenarios out there? Comment below.