If you are looking for a turnkey, affordable property, a newly renovated home can be ideal. Often, traditional house flippers will take an older property in an established community and upgrade it with contemporary touches, from new plumbing and electrical to a modern kitchen. However, it’s important to know that the craftsmanship and professionalism of renovated homes greatly vary. While some renovations are done correctly, others have shoddy workmanship that can seriously compromise the value of the home. Avoid investing in homes with bad renovations by doing this:
Ask About Work Permits
Your agent should be able to help you ask the seller for copies of all work permits, which are required for all renovations. If the seller isn’t open about sharing this information, this may be a bad sign.
Look Closely at the Details
While a professional inspection will catch major issues, like structural, plumbing, and electrical, you yourself can catch small issues. Are the floors even? Is there any cracked cement or tile? Do drawers slide smoothly and do cabinets closely correctly? These small issues can add up, so check for them and have them fixed beforehand.
Identify Materials Used
Check to see what materials the flipper used, such as types of wood, countertops, paint, and other finishes. If a flipper used cheap materials that look nice, it might be a sign they cut corners elsewhere.
Consider Asking for a Home Warranty
If you are worried about possible issues, when you make an offer, ask for a home warranty. This type of policy often covers the main elements of your home, including plumbing and electrical.
This is why I don’t teach my students to “fix and flip”. It’s a lot easier (and a lot less hassle) to use my Unlimited Funding Program to “fix” the paperwork of a property, as opposed to a physical house.