Fix and Flip - Where can you lose out? Hidden Repairs.
Fix and flip. Where can you lose out? Part 4. And part 4 is the hidden repairs.
Welcome to Wealthy Wednesday.
Hidden repairs are dangerous. That's why most of the time you don't get a chance to inspect the property when you purchase it for fix and flip because of the demand. But it is a good idea when you are going to view the property, take your contractor with you or a friend who knows about the property, who knows about the repairs.
For example, if a property has settled in a corner and you kind of don't see that because it's not settling that much like a very little and that thing can cost you over $100,000 just to get it up and make it right.
Termite Damage!!! I remember another friend of mine who bought a property and after closing he found out the whole roof structure was eaten by the termite. It's almost like falling. You got to be very careful and those things cost a lot of money. Be very careful when you're buying the property.
Don't buy a property with those hidden problems, like a plumbing problem, not a little problem. Sometimes you may have to change the whole piping because it's a polybutylene pipe and then sometimes the electrical, maybe the house has cloth wiring and then you have to change the whole thing.
As long as you have that in the budget because if you don't have that much meat on the bone, not that much gap and then continuously spending money to repair the home, that can take your profit out. So be very careful of all the hidden repairs. Don't fall for it.
Give me a call if you have any questions. My name is Shawn Bhakta from Remax Presidential. Over 15 years I'm doing investments and over 20 years in real estate. I'll be happy to help.