how to start flipping houses
Searching for how to start flipping houses, here are some items to consider prior to taking on this challenge. Before becoming an Auctioneer I was and I still hold a contracting license. I have personally worked on some (well I will call the structures) homes that were certainly not in the best of shape. For a period of time I remodeled what was called Community Development Block Grant Housing Projects. This program was in force to help low income folks get their homes revamped and fixed to livable standards. Some homes had not been repaired for decades. Some were in decent shaped and needed minor repairs, some were total disasters. However with the CDBG program our mission was to repair the houses to bring them up to livable standards and during this process I have learned some valuable information about home construction and repair. As an Auctioneer the last decade and a half I have learned even more about how professionals acquire, fix and flip for a profit. As a real estate professional in the sales arena I have personally seen people win and lose when it comes to buying and selling real property.
The following are some tips that I would suggest you look into prior to buying and flipping a house in or around any location. Just be smart, use not only common sense but leverage a, professional advice. Using the aid of other professionals will allow you to see a different vantage point and may even save you lots of money. Take a home inspector with you if you are not familiar with all parts of a home. A contractor may be a good choice but insure you have a good working relationship with contractors prior to engagement. Make a check list, check it twice, and then do a budget analysis to determine if it will be feasible to tackle the project. Many make it look easy, but trust me sometimes it’s not as easy as it appears. Hard work and smart decisions will get you across the finish line. Take your job seriously and every day matters, do not start your project and decide to get around to it. The old saying “time is money”, well that is true for sure.
How to start flipping houses: Make sure this is a good investment for you. I will not say… do not be scared, but look at every detail. Many times the small little changes eat into your profit margin. And you do not want to paint over a major detail and end up. It does not always work to invest in cosmetically challenged houses that you can beautify and sell without a huge investment of time, effort, or repair and renovation costs. This strategy enables you to focus on the overall process and on finding good opportunities. When you buy a quick flip opportunity, your goal is to make the property really clean and well-maintained, not only something a buyer will want, but something they can enjoy without major hassles after the purchase. You do not want after the flip hassles either. Use the following checklists to ensure that you focus on the most important and most profitable repairs for your quick flip, but be cautious, quick does not mean profitable. Cosmetically challenged homes may mean structurally challenged as well.
How to start flipping houses: When you start to sell, sell for the highest possible price, sell quick (HIRE A PROFESSIONAL AUCTIONEER <Myers Jackson>) and get the property to closing. I have heard old timers say you make money when you buy, however with house flipping there can be many variables in the cost and expense of make the house in good shape, so selling quicker is better to save time and money. Many items may affect the resale of your new investment, so consider all possible deterrences from future buyers. Attraction can be a plus depending on your target buyers, however whatever you decide, take these items into consideration in advance.
Reports
• Wood destroying organism reports may show rot, bug damage or other deterioration.
• Termite reports will tell if Termites exist or have caused previous damage.
• Home inspection will detail the working order and functionality of the home.
• Appraisals or BPO’s may help you determine value ranges and other demographics.
Electrical
• Replace old paper covers, wires; check the up to date national electric code.
• Insure any electrical hazards are repaired, check with a licensed electrician.
• Inspect all outlets and panel boxes for correct function.
• Many homes have been vandalized and copper wires have been stolen and sold for scrap.
• Check the service pipe from the utility provider, underground or overhead.
Plumbing
• Check sewage connections, public or private street connections as well.
• Check for leaking in old busted pipes, many copper pipes have been removed and taken.
• Check shut off valves, hot water heater connections, traps and ventilation.
HVAC
• Check the current sear rating for highest performance.
• Inspect inside and outside units and al connections.
• Is the unit energy efficient and up to date with high standards?
• Is the unit still there, insure all duct work is intact?
Roofing
• Inspect plumbing vent stacks. The boots around the pipe.
• Check the overhead electrical pipe stack for leaks.
• Have a certified roof contractor check the age of roofing material.
• Is the roof too low pitch for shingles ?
• Check for build up or limbs, leaves and debris on roof.
• Check for back leaks behind the gutters.
• Are there visible leaks from the underside of decking? check? inside attic.
• Is there evidence of hail, wind, or fallen tree damage on roof surface?
Exterior (curb appeal)
• Trim tree limbs and shrubs.
• Mow and edge the lawn, weed and clean up.
• Replace dead or dying shrubs and plant flowers, especially near the front.
• Apply a fresh layer of mulch, pine straw or other ground cover.
• Remove clutter and eyesores, trash and fallen limbs.
• Fill driveway and walkway cracks.
• Power-wash the siding, tuck-point a brick home, or paint a wood-sided home.
• Repair or replace windows and screens.
• Add or replace shutters, paint does not always fix them.
• Paint the front door and trim, check trim for wood rot.
• Paint the garage to match the house, or make it stand out.
• Replace the gutters. Seamless gutters are best. Install splash blocks or gutter extensions.
• Replace the front and rear storm doors, repair screens and glass.
• Replace exterior light fixtures, make sure bulbs work.
• Replace the mailbox choosing a color and design that fits in with the neighborhood.
Interior
• Give the place a good scrubbing, pressure wash, clean it up.
• Wash the windows. Clean them well. Replace cracks and screens.
• Install new window blinds. Make sure they work.
• Clean or replace any drapes or curtains; let the light in.
• Remove hooks and nails from all walls and patch the holes.
• Fresh coat of paint to all rooms, using flat, neutral colors for the walls, semi-gloss white for the trim.
• Check and repair all doors and doorknobs. Doors should open and close effortlessly.
• Install new light switches and outlet cover plates.
• Install new smoke detectors, check batteries, electrical compatibility.
• Replace the thermostat and doorbell.
• Re-carpet, refinish, or replace damaged or worn flooring.
• Swap out the register covers, make sure they operate.
• Replace exhaust fan covers and maybe the fans.
Kitchen
• Install a new stainless steel sink maybe, that looks good.
• Install a new faucet if necessary, seals may need updates.
• Update the countertop. If it looks old or out of date, have it replaced.
• Refinish the cabinets, if needed, and add new hardware — knobs and handles.
• Apply new shelf liner to all cabinet shelves and drawers, clean out the bugs…!
Bathrooms
• Install a new vanity.
• Install all new fixtures.
• Replace the toilet seat or entire unit.
• Replace old towel hangers, make trending new fashion.
• Replace shower curtains or install glass shower doors, seal well.
• Apply a fresh bead of caulk around the edges and base of the tub or shower.
• Scrub the grout between any tiles thoroughly, clean it really well.
Bedrooms
• Paint, make a feature wall that stands out.
• Re-carpet, or look for original hardwood floors, they are hot margins.
• Replace light fixtures, cover plates, and register covers.
• Install closet organizers, if needed.
Basement
• Sweep the cobwebs out of the rafters.
• Dust off any ductwork, pipes, or wiring.
• Tack up any dangling cables, secure electrical wires.
• Seal all cracks in the walls, check for moisture.
• Whitewash concrete or cement-block walls with a sealing paint.
• Paint the floor using gray enamel paint.
• Install new glass block windows, if necessary.
• Buy a roll of insulation and stuff pieces of it between the joists where the joists meet the outside wall.
Mechanicals
• Change the furnace filters, and /or AC filters,
• Clean or replace the hot water tank.
• Repair any leaky faucets, seals.
• Unclog any plugged or slow drains.
Neighborhoods
• Check vandalism reports and police activity.
• Are there homes with asbestos or other environmental activity?
• Are there major zoning changes that may affect the community?
• Commerce, Community Care, Schools may be something to consider.
• Utilities, water sources, sewer, garbage services, utility bills.
Flip and Move a house…
This is a whole other subject. This takes a superior level of skill, equipment and experienced work force that can make this happen. If you want to learn how to start flipping houses, Texas Flip and Move cast, The Snow SistersTX-Casey Hester-Catrina Kidd-Granville Randy Martin-Myers Jackson-will show you how. With DECADES of experience Mr. HD Snow has lean many or men and women up and down roads with a house in tow…make no mistake this is a job that requires intelligence and attention to detail. Make sure you contact an experienced professionals before trying this.
