5 Signs a House Isn’t Worth Flipping


Fixer-upper properties are never pretty, but they make for great house flips. But how do you know when the renovations or damage are too much? Hilary Farr has noticed that a common mistake house flippers make is investing in a property that is beyond salvage. Some problems are bigger than others, and if you take on a project that puts you in over your head, you risk any potential of making a profit. How can you tell if a house is damaged to the point you can’t make a profit? Rules of Renovation has 5 red flags to watch out for when investing in a potential flip.

1. Asbestos

This deadly building material can cause a lot of health problems, including cancer. Luckily it was banned in 1989, but it is still found in some older homes. If your potential flip has asbestos present, all of it will need to be removed, and depending on the location and how much was used, the removal process can be costly. Find a good home inspector who can identify potential asbestos and show you how to test for it. Common places to find it include floor tiles, insulation, roofing, and wire insulation.

2. Sagging roof

Make checking out the exterior of a potential flip house a priority. Walk around the outside and check the roof from every angle. You might spot a few missing shingles or mossy spots—both are quick and relatively cheap repairs. If the roof is sagging, however, think carefully about buying the house. Sagging is a sign that the entire roof needs to be replaced, which you can count on being expensive. While you may not need to pass on the house, keep in mind that the repairs will be costly. You’ll then have to determine if you can afford to replace the roof in addition to other needed renovations.

3. Pests

Critters are a common problem in older houses, especially if they’ve been neglected and unoccupied for some time. Still, getting rid of pests can be costlier than you might expect. Mice can be taken care of pretty quickly with a few traps, but other pests require multiple treatments from an exterminator—and may still return. Cockroaches and termites are particularly resilient. Termites cause damage by chewing through flooring and walls, which is definitely something that you will need to repair. If you see any indication of pest problems in a property, you may want to reconsider the purchase.

4. Flood prevention

Flooding from rain or broken pipes is always a danger in a home. What has been done to divert water away from the house you are considering for purchase? And are there signs of previous flood damage? Ask yourself these questions as you walk around the outside of the house. Broken gutters can easily be repaired, but if the lawn is sloping down toward the house that can be a problem. Damage such as water stains in the basement or garage can be costly to repair and are signs that flooding has been an issue.

5. Foundation problems

As you walk around the inside of the house, be on the lookout for floors that seem to be sinking toward the middle of the house or to one side. This isn’t a sign that you need new flooring, but rather that there is a major problem with the foundation. Replacing a foundation is a huge investment of time and money—the process of getting a home lifted, the foundation removed, and a new one rebuilt is too much for most house flippers.

No matter how good a price is on a house, you need to evaluate the cost of repairs before deciding to flip it. Rules of Renovation recommends walking away or seriously re-considering if any of these red flags pop up.

Interested in learning more tips for house flippers? Attend a Hilary Farr seminar for professional tips and advice.

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