Reasons to beware of flips
This sounds like a funny article for me to write because I buy and sell properties-sometimes fairly quickly (known as FLIPS) but you need to take an extra look at a home if you know you are buying a "flip" property.
Not to say that all or even most investor rehabs are shoddy, but it is something to keep in mind if you are interested in buying a home you suspect may be a flip.
Most investors are out for a quick make over to get to the cash from the sale. For this reason, it is important to have a thorough home inspection.
- Use a professional inspector, not a friend or relative just because you trust their opinion or because they own a home.
- Pay extra if necessary to have the inspector crawl through the attic, basement, and crawl spaces.
- Go with the inspector so he can show you first hand what he is talking about
Now, there is nothing wrong with flipping. Many investors do a fine job of returning distressed properties to useful life and there are many good deals out there right now. Just know what you are buying! Go for a bargain if that appears appropriate, but don't be fooled by a slick job of cosmetic repair.
Buying a house that has just been renovated may look nice on the outside but, it may also just have a "pretty face" Do your homework now or you could pay for it later!