When entering into the Flipping Houses industry for the first time there are a few dangers involved with rehabbing homes every real estate investor should keep in mind.
1. The soundness of the structure.
Before starting any heavy duty construction on the home, you should always have the structure of your investment homes inspected by a licenses real estate inspector to ensure the walls are sturdy, the floor is sound and the roof does not cave in on you or your construction crew.
2. Hazardous Materials
Often times older homes may have materials that are hazardous to humans if ingested, inhaled or touched to the skin, a few examples are; lead based paint, asbestos which can cause mesothelioma, toxic molds and other hazardous materials.
3. Vermin
Be mindful when touring investment properties of animals, reptiles and insects who may be occupying the homes especially if they have been left vacant for long periods of time. Long uncut grass can attract reptiles such as snakes, chimneys and crawl spaces can attract raccoons, skunks, armadillos and other creatures. Insects such as bees, wasps and other stinging flying creatures can invest porches, fences and sometimes attic spaces, sheds and garages.
4. Electrical/Gas Hazards
The electrical wiring and the gas lines within older homes may be unreliable and at times very dangerous. Be sure to have a real estate inspector check to ensure the electrical box and wiring in the home is not in a hazardous state before major construction. Be sure to check the electrical connections to large appliances such as the furnace, water heater, stove, refrigerator and other appliances. Also be sure to have an inspector check for gas leaks within the home especially around the furnace, water heater, clothes dryer and stove.
5. Getting Ripped Off
Be sure you know the area before you invest in a fixer upper when flipping houses. Making a bad deal may not impose an immediate danger as the items above, but it will hurt. Real estate investors should do their research before investing to ensure they can recoup the cost of the home, the cost of repairs to the home, the cost of owning the home during construction, and hopefully make some profit.
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