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Fix and flip quick check list

Quick check list of what to look for in a property you are considering for a fix and flip.

What to look for in a Property when assessing it for a flip.

We asked an experienced Flipper what she looks for in a house that she is considering.  And this was she looks for.

 

Living, family, dining, bed, bath rooms:

How do they look and what can you improve on? Remove walls, upgrades?

Roof:

New or Old?

Kitchen:

Rehab or remodel?

Furnace/AC:

Working or NOT?

Garage:

New doors?

Exterminator:

Termites or Roaches?

Plumbing:

Areas of concern?

Electrical:

New or old?

Driveway:

Cracks or need replacement?

Sidewalk:

Yours, or the Cities?

Exterior Surfaces:

Repainting, plastering, stucco work needed?

 

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Determine After Repair Value | ARV

How to do a Financial Analysis of a Home Flip

Comparable Market Sales

Financial analysis of a fix and flip.

Financial analysis of a fix and flip.

  • Pending Sales
  • Active Sales
  • Walk the Neighborhood Local Realtors

Identify Repairs and Improvements Repair

When it comes to renovations you really need to think in terms of the different possibilities.   This is a fun and exciting part of fixing and selling properties.  It’s a chance to use your creativity and you imagination. But then you need to temper all that with the reality of the cost verses the value added to the property.  So consider breaking down your options in to these three categories:

Repairs – “Must”

This are repairs that are causing a safety hazard or that are required by building standards.

Renovations – “Should”

These will be mostly dictated by what is standard and customary.  So if all the other properties in the neighborhood have 3 bedrooms and two bath and your property has 3 bedrooms and 2 baths then you really “should” consider adding a bathroom.

Upgrades – “Could”

This is where your creativity and financial analysis could make or break a deal.  If most of the houses in the area don’t have a pool, and it will cost you a whole lot to put in a pool, but not sure if buyers are going to value it, that’s the “could” that you need to really think on.

Opportunities to Add Value

  • Amenities
  • Openings (Walls)
  • Conversions
  • Additions
  • Layout Changes

Account for Holding Costs

  • Buying costs
  • Holding costs
  • Costs of money
  • Selling costs

Set Minimum Profit

This should be a percentage of your After Repair Value that you set for every flip.

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