House flipping has been a great investment opportunity for many generations. With the potential to earn a significant profit, large fortunes have been built on the ability to flip properties. Most beginners believe that the most important part of the deal comes when it comes to selling. However, they are mistaken. The most important part of any flip is the purchase. This is when you set your profit potential. There is an old expression that says “you make your money on the buy.” With flipping, nothing can be truer. Understanding how to pick out a great house to flip requires experience and skill. The most seasoned flippers all have a mental checklist that they follow when walking a property. To be successful, then you must know what to look for when walking a property. 

Foundation

Fixing the structure of the property can set you back thousands of dollars. When doing a good walk around the property, you should identify if there is any need to address the foundation. Pay attention to things such as the difference in crack sizes on the foundation. Depending on how large, you will gain a little insight into how much fixing the foundation will require. Cracks along with windows, brick mortar, over doors, and corners are other areas that you can look at to determine foundation issues. A good practice is to have an expert available who can give you a free quote on the repairs. However, most flippers would probably stay away from a deal that requires major foundation repair as this can be one of the biggest drainers of cash. 

Roof  

The easiest place to start with the roof is by counting the layers of shingles the home has. A rule of thumb is that if a home has 2 layers of shingles, then you are going to need to replace the roof. Sometimes the best view can be attained on the second floor. Get up close to examine if there is any rot on the roof. Stand far away across the street to see if there are any other anomalies you can spot with the roof. The roof is your next biggest expense so if you can avoid having to deal with the roof, then you probably would already save some money. However, real estate is a competition, and sometimes to stay competitive, you may need to go where others won’t. 

Kitchen and Bath Remodel 

Nothing boosts a property’s value like a good kitchen and bath remodel. In fact, if you see the opportunity to fix anything cosmetically with the kitchen and bathroom, then this is probably a deal you would like to stick to. Compare it against other homes in the neighborhood to best gain insight on the level of redesign needed. When buyers or tenants look at homes, there is always a lot of focus on the kitchen and bathroom. By looking for these opportunities, you can definitely boost the value of your home. 

Other Notable Mentions

There are a variety of other options to look at when reviewing a potential flip. Keep an eye out for damage to walls, electrical issues, A/C, heat, cabinets, plumbing, and paint just to name a few. Create your own checklist and stick to this system each time you review a property. By following a strict system, you ensure that you get the deals that match your criteria.