Purchasing a Flip Home Can Easily Become a Financial Flop

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Purchasing a Flip Home Can Easily Become a Financial Flop

When purchasing a flip home, know what you are looking for! How many of you have sat on the couch and perused through the channels on the television and unconsciously landed on one of the MANY home renovation shows?  Watching, you see the team purchase the ugliest, nastiest, flashback from the 60’s home on the block.  Within an hour, the home is gutted, painted, new fancy pretties all over and a for sale sign is plunked in the yard. And lo and behold, it sells within the last 30 seconds of the show!

home renovation contractor union waMotivating, huh? The reality is as you know, those outdated, vandalized, inhabited by who knows whom homes are scary! Not just visually, but mechanically and structurally.  Finding a home that works as a quick turn around needs to be looked at with a variety of thought processes.

First, walk the house with open eyes.  Sometimes, a house on the surface can look awesome.

But as you look at the cracks in the walls and ceiling, the dry rot in the corners, outlets that don’t match, and bouncy floors, these are signs that could be big ticket repair items.

Second, check for updates to the home.  If you are purchasing a home “as is,” from the bank or at auction, you are getting a home just the way you see it.  If the home has had improvements made to it, check the county for permits obtained.  There is nothing worse than needing to bring an existing add-on or upgrade to code or dare it happen have to tear down said addition, adding to the budget.

Third. spend your money on making the house sound before going for the pretty.  Let’s face it, we all like pretty things.  But turning a house quickly, the inspector is your watchdog!  He/she will call out all mechanicals and structural issues which puts you back to construction phase instead of signing escrow papers.  And selling a structurally and mechanically sound home will make you sleep well at night.

Once you know the house will pass inspection, spend your money on the kitchen and bathrooms.  These are big ticket items that potential home owners shudder at when they aren’t updated.  Flooring is a close second. Don’t be afraid to jump out of the “neutralize” zone.  Pinterest has opened the eyes of many savvy home buyers and a renovated home with personality will pop versus the contractor pack home.

Ultimately, flip homes are great investments as long as you start with open eyes, focus on the mechanicals before the pretty stuff, and make sure your money goes to what buyers will appreciate.      TN Miller Remodeling is a full service remodeling company specializing in remodeling and custom homes.

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