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House Flipping - Make Your Money On The Buy In Frisco TX

By
Real Estate Agent with Alex Lowery Real Estate

REMAX DFW Associates Frisco TX

Read My Articles On Rehabbing Properties
Forming a Successful Real Estate Rehab Team in Frisco TX

The top 12 things I look at when I walk through a house I am interested in rehabbing: 

1. Price - Make sure that the price is way below the market value of the real estate in that area otherwise you are wasting your time looking at properties that you cannot make any money on.  

2. Foundation - I buy and sell real estate in Frisco, Texas and foundation is a huge problem here, and it is the first thing I look at. If there is foundation damage you need to see how much this is going to cost to have fixed. Many times when I am looking at a property I can call my foundation guy and he will come out and give me a free quote on the spot. Foundation damage can drain a budget so until you are comfortable with you skills at judging the amount of foundation damage call a pro for a quote and then factor that in your budget. When looking on the outside and inside of the house you are looking for cracks above windows, along brick mortar, over doors, and in corners, and many times you can feel the foundation sinking in certain areas of the house. Be sure to walk to the corners on the rooms and you will be able to tell if the piers have sunk. 

3. Roof - I check the roof by counting the layers of shingles. Normally if there is over 2 layers of shingles you are going to need to replace the roof. Also, as you are walking through the inside of the house look up at the ceiling and look for water spots. This is also a huge indicator that you are going to need to replace a roof.  Your foundation and roof are normally you 2 biggest expenses. 

4. Walls - Look for holes or damaged sheet rock that is going to need to be replaced. Drywall is cheap and not a big deal, but does cause a lot of buyers to run away from the property. I love houses with holes kicked in all the walls. Holes = Money. 

5. Electrical - Look at condition of breaker box. If you are going to add something like an A/C unit you might have to upgrade the electrical, so you need to keep that in mind.  Next if the power is on to the house you can check the lights and buy a cheap power test that you can plug in a wall to tell you if it has power, and you can get an idea if the electrical has issues in the house. 

6. A/C and Heat - Check to see the age and condition of the air conditioning unit in the potential flip so that you can see if you might have to replace them and leave room in the budget if you think you might have to replace the unit.  

7. After that cabinets - Look to see if you can use the old ones or if you are going to have to replace them all. 

8. Counter Tops - You have to go with granite in Frisco Texas. 

9. Plumbing - Make sure the toilets will flush and water will run. The water heater is normally off so you can't test it, but you can look to see how old it is, and that will give you an ideal if you are going to have to replace it.  See how many faucets, toilets, shower heads, and other plumbing fixtures you might need and factor them in the budget. I normally replace almost all the plumbing fixtures to give the house the new look. 

10. Flooring - See how much of the flooring is going to be fixed or replaced. I always, if possible, refinish my hardwood floors, and put down ceramic tile.  If there is no hard wood I will estimate the cost for carpet. 

11. Paint - Don't for get to price paint inside and out. 

12. Appliances - I normally replace all the appliances, so you need to factor that in as well.

Please feel free to give me a call at 214-234-6901 or email me at Grant@GrantHowell.com. You may also visit my Web site www.BrokerMyHouse.com for additional information on the real estate services I provide. I look forward to hearing from you.

 REMAX DFW Associates Frisco Tx

Comments (2)

Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

well done Grant. We just finished re-habbing 2. One went on market last weekend the next goes on this Saturday. Perfect advice.

Apr 07, 2010 08:57 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Great article!  I rehab houses in the Colorado Springs area, it's definitely a great time to pick up discounted properties.

May 05, 2010 01:01 AM