I'm interested in the idea of flipping houses. It seems like it requires a unique combination of skills: you have to know the real estate business, you'd have to be good with DIY stuff, and you should be savvy enough to prep properties in ways that would make them more likely to sell. But I also know there are risks, which is why I haven’t attempted to dive into this business model. I know that home flipping means buying places that are "fixer-uppers," but a place I’ve been considering has issues with its foundation, and I hear that they can be really serious. What should I know about this business before getting in deep?
Flipping homes can be a lot of fun, and it can be incredibly financially rewarding. But it's not without its risks, and it's no simple job: you'll really have to commit to your home-flipping strategy if you're going to get far with it.
There are a lot of keys to flipping homes effectively, but one of the biggest, experts say, is knowing how to recognize the right kind of property to buy. You're absolutely correct to say that flipping relies on being able to get "fixer-uppers" at a discount, but you are equally right to be wary of problems that may beyond your ability to fix. Managing risk is what home-flipping is all about, experts say, and excessive risk could limit the upside of your home-flipping purchase. There are some issues that a house can have that make it very difficult to flip in a cost-effective way. This is simply because these issues run so deep that they require great effort or spending to fix. In some cases, the home may be a better purchase for someone who plans to tear down the structure and just sell the lot!
Foundational issues come in all shapes and sizes, but they can certainly be serious enough to fit into this category. A home's foundation is crucially important to its safety, sturdiness, and value. That's why homeowners should always be careful about checking for issues with their foundation, experts say. Cracks in basement walls or floors could be signs of more serious problems within the foundation, and these issues can get worse quickly. The sooner the repairs are made, the more manageable they will be.
Fail to address the problem in time and you could end up with the most costly and serious foundation issues. Worst-case scenarios include the need to remove and replace the entire foundation — a costly proposition indeed, but a necessary one in these cases if you want to save the house! No wonder “foundation problems” are among the worst words you can see on a home inspection, according to experts.
The good news is, like other problems with a home, a foundation issue could be your ticket to a good flip. If you get the right price on the place, make the necessary foundation repairs, and then resell it, you could turn a profit. You should familiarize yourself with the process of checking for foundation damage if you’re going to get into house-flipping. But remember that the only way to know for sure if a foundation issue is a dealbreaker is to get a sense of what you'll actually have to spend by working with a foundation repair expert that you trust to evaluate the property in question. If the numbers work out, great — but if they don't, you should definitely walk away.
If you're judicious about the properties that you invest in, you should be able to turn a profit by flipping houses. Don't rush into the business, but don't be afraid to go for it if this is your dream. We wish you all the best.