Fatal Flaws of a Flip!

Calculating the costs and making wise choices in the selection of your properties is one of the keys to ensuring your investment success. You want to avoid investing your money into properties that will be too costly in repairs. If you find these flaws, you may want to think twice because unforeseen repairs can cause the investor more time and money on the property and therefore, you may only break even on the investment. The best way to prevent this issue is to conduct a thorough inspection before you purchase the property. The following list of problems will help you in determining your purchase.

Foundation-When inspecting a property, be sure to look for cracks and crumbles in the walls and ceilings, especially in the basement area. This is a great indication that the foundation is crumbling and may need major repair.

Water and Sewage Problems- Be sure to have your plumber inspect your potential flip for water and sewer issues before you purchase the property. Mold/Mildew and foul sewage smells indicate that there may be extensive plumbing issues. Plumbing and sewage issues can be costly so avoid properties that rack up heavy bills in these areas.

Trees/Property Line issues- Be aware of any issues that concern large and/or old trees on the property and where the property begins and ends. Fences usually help to determine the separation of property but you never know. These issues can create trouble with neighbors and you'll have to get the city involved to determine what part of the property belongs to you and what is yours to fix and sell.

Health Hazards- Avoid buying properties that have asbestos and toxic pollution from chemicals. Also, excessive lead base paints are known for environmental pollution. You don't want to deal with this when selling your property to a potential family.

Residential Add-Ons- If you find a property that has a new addition, i.e. Bedroom or bathroom, be sure that a permit was pulled to build these add-ons before you decide to purchase the property, the less money you spend in bringing the property up to code, the better.

All of these issues can be costly for you. The object is to make money from your properties. You definitely don't want to spend all of your time and energy in a property that will not bring you in a good return on your investment. The search process can be very tedious but you don't want to purchase a dwelling with too many flaws. Take your time and have members of your "A-Team" do the math for you. If the property is not worth the investment, keep on searching. There are tons of distressed properties around your city that will bring you a great profit. Remember, this business takes time and patience but it will be worth your while. Hard work will persevere! Making the right decisions is a critical part of your business. Don't be afraid to ask questions about the property that you are purchasing. Also, don't be persuaded by the seller of the property that these issues are small and can be easily corrected. Go with the advice from the members of your "A-Team". This will save you a ton of money!