When it comes to house flipping project, you have to look out for the hidden costs. Not all properties are ideal to flip. If you want to make house flipping a primary source of income, then you have to know how to do it right. Flip with an enthusiastic spirit but do not forget to be cautious too. You need to know how to spot properties with hidden costs. Usually, they are the properties that require major repair. Major repair signs to look out when flipping a house include the following: • Damaged walls – Any damage concerning the walls, especially leak in the basement wall can be very expensive to repair. It will eat a huge portion of your rehab budget. • Presence of mold – Watch out for signs of mold as it indicates water coming into the house. It is usually cause by a faulty plumbing system, which can be very costly to repair. • Wavy roof – Pay particular attention to the roofline. If it has a slight wave, it is an indicator that the structural support is deteriorating. Check the condition of the shingles as it could suggests that the roof needs to be replaced. • Sagging floor – check the flooring. Did you notice a sag to it? If yes, then it is an indicator of a serious problem. The foundation and structural support of the house is not that strong anymore. Again, such problem requires a lot of money to repair. • Watch out for signs of asbestos – You can easily spot signs of asbestos because of its yellow color and flaky texture. Removing asbestos can be very difficult. It will require a lot of money. If you don’t have sufficient rehab budget at hand, then you have to carefully inspect the property for such problems. As a house flipper, you have to know how to spot a house flipping worthy property. Just because the house is sold at a dirt cheap price does not necessarily mean that you can make a lot of money from it. Sometimes the cost of repair is even higher than the purchase price. You have to watch out for the above-mentioned repair signs and decide whether or not your budget can accommodate the repair.Scott Yancey is a real estate expert who specializes in house flipping.
Follow Scott and watch his TV show, Flipping Vegas to learn more about finding a house flipping deal and how to rehab within your budget.
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