Amid the excitement of finding your first home to flip, it’s important to remember selecting your flip is a business decision. As such, research should guide your choice rather than emotions. For instance, the general school of thought is move-in ready houses aren’t good choices for flips. The house must need improvement if the flip is going to be profitable. However, acceptable hazards for your flip needs should be easy repairs for a new investor to deal with. Some repairs are unacceptable hazards that may become too much in terms of expense or complexity for a first-time investor to handle.
Acceptable Hazards
1. Old Carpeting. Dealing with old carpeting may be as simple as removing it to reveal the original flooring. If the flooring underneath is not in good condition, new carpeting is very inexpensive and may come with free installation with qualified purchases.
2. Dim Lighting. Well-planned lighting upgrades can help you stage the home to sell.
3. Leaking Faucets. Replacing faucets resolves the leaks and updates the home’s look.
4. Overgrown Yard. Planting and trimming are easy enough to be a DIY project. If you’re not interested in doing the work yourself, you should be able to hire a landscaper who can work within your budget.
5. Broken or Missing Hardware. Replacing door knobs and cabinet pulls is another way to modernize the look of the home. Also, it’s a simple project you may want to do yourself.
Unacceptable Hazards
1. Foundation Problems. Structural problems tend to be complicated, stressful, and expensive.
2. Major Roof Issues. A new roof is costly. Also, water damage inside the home often accompanies a compromised roof.
4. Outdated Wiring. Bringing old electrical work up to code is a major undertaking for a new investor.
4. Mold Growth. Excessive mold growth requires expensive professional remediation.
5. Collapsed Main Sewer Line. Sometimes, a blocked sewer line can be cleared for a reasonable cost. When the line has collapsed, a costly replacement is usually required.