Know what you are buying.

[badmomma]

My husband and I have looked at alot of properties and some were very nice others not so much.

It is important to know what to look for when buying a home for a flip. You need to do this especially if you have a budget to work with in.

If you buy a property and didn't look it over carefully and suddenly find serious issues that need to be repaired you will most certainly go over budget.

We looked at one in particular that had support issues with the stairs and the kitchen floor was raised exerywhere but a 3 foot area in front of the kitchen sink.

There was an existing dishwasher that was totally trashed and a pool in the back yard in very bad condition. All of this would have to be disposed of and we decided after we saw the furnace and electrical box not to buy.

The issues were just more than we could afford on top of the price of buying the property. Paint and carpet and minor repairs were already figured in but we really couldn't afford to do so much extra work.

[loumatt]

Probably a smart move IMO.Those issues combined with the unexpected that almost every project comes with will put you in the poor house real quick.Who knows how the building inspector would veiw these issues and where that will go.
Structual and damage from neglect seems to be full of unwanted surprises.

As bad as the housing market is I find it pretty difficult to find houses that can turn a decent profit.Guess its who you know.

[badmomma]

Well your probably right about the who you know thing. I mean if your buddy is the building inspector than you might get a bit of a break.

I see alot of houses for really cheap but the work that needs done to them is costly and takes them off my to buy list.

There was one home for sale that had to have water brought in from the street.

Another used to be a gas station and the tanks were still there. That one took me two seconds to decide. You have to have them removed and the soil removed and then replaced and the cost for permits ecetera. Way to pricey for me.

[loumatt]

Originally Posted by badmomma

Well your probably right about the who you know thing. I mean if your buddy is the building inspector than you might get a bit of a break.

I see alot of houses for really cheap but the work that needs done to them is costly and takes them off my to buy list.

There was one home for sale that had to have water brought in from the street.

The 'Who you know' thought started occuring to me when we lost out on a few houses (different incidents) that went without offers for months while the banks lowered the price.Once my offer was submitted (full asking price) I was told that it sold,on that same day,for a higher price.Guessed someone was making sure these properties were untouchable....to me at least.There may be alot of money to be made in the real estate business if you have the right connections.

I also came across a property that had a too good to be true price until I called the city and found out it needed $7000 in permits alone to bring in water from the street.Sure am glad I made that call or it would of been a financial disaster.This same house was also listed as no garage and when we pulled up there was an attatched 2 car garage.How does a realtor miss that kind of detail other than outright laziness?

[badmomma]

Those kinds of errors really make buying a place difficult. I don't know how this happens but it does occasionally.

Its a shame to see you miss out on properties like that but sometimes its business's that come in and grab the properties up. The thing about the water makes me sick cause these properties are great up until that point and some research should have been done by the seller. How do they figure they are going to get top dollar for a place with and issue like that? WOW!