The Story

Our house flipping team recently purchased a 1940s bungalow home in “full-gut” condition in Denver, Colorado. Over the years, the home was occupied by a variety of family members and, ultimately, became a hoarding situation. After purchase, I immediately started my evaluation, budgeting and timeline process on the property — an integral step in our fix and flip process.

 

I start by evaluating the property during an initial walkthrough.

Prior to arriving, I studied comparable properties, the neighborhood and estimated the rehab budget for a home of this age and size.

Coach’s Tip: Fixters’ Evaluate can help you understand if a potential flip is likely to be a stud or a dud. Download this PDF to see it in action. 

Next, I consider the comparable properties in the area.

  • What does the neighborhood look like?
  • What streets are near by?
  • Have the homes in the area been updated?

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These are important questions to ask when looking for a potential fix and flip property. I highly recommend walking the property yourself and gathering your own observations before walking through with your General Contractor.

Coach’s Tip: Check out Fixters’ blog for tips on finding a flip-worthy house.

It is important to survey the exterior of a potential real estate investment during initial walk through.

As I look at the property’s exterior, the landscape appears to be an easy fix. However, egress windows and a buckling roof are large ticket items that I must address. Also, I look at the exterior structure. What is the condition of the roof? What about windows and doors? Is the stucco cracking or are the bricks crumbling?

Coach’s Tip: Get ideas and landscaping tips for distressed home exteriors in this blog on curb appeal.

As I enter a potential fix and flip, I am looking primarily for large issues.

I’m also taking note of salvageable items, like doors or floors, that need paint or stain. Those small updates will save me a little money on my flip.

In this home, I found floors that nearly 100 years old. As I mention above, it should be easy, and cost effective, to clean the floors and add a fresh stain to update the look and keep the original character and charm.

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Coach’s Tip: I recommend evaluating your potential flip with Fixters. It allows you to take notes, pull in real-market data to your estimate, create lender documents and much more.

More often than not, there is opportunity in a distressed property’s chaos.

Even if you find major problems like galvanized piping or a dysfunctional water heater like I did, the property can still be a good flip.

Coach’s Tip: Learn how to spot and remedy galvanized pipes in older properties. 

Join me for the next installment soon. I’ll cover the renovation process and share how to keep your project organized, on time and on budget.

In the meantime, if you need help to start flipping houses or you run across a problem with a current flip, check out our Fixters Products. They are here to assist you at any stage of your project