When deciding to fix-and-flip a property, it can turn out to be a great investment or an unnerving headache. For a successful fix-and-flip, it is essential to be fast and quickly but accurately decide the worth of a property. Â Here are the main factors to consider when determining the potential of a fix-and-flip property: the location, the outside, and the utilities.
For the location, one can look at the proximity to good neighborhoods, good schools, grocery stores. But, more importantly look to see how the price of your property compares to that of the neighbors. One can look at whether or not a neighbor has updated their home and the property value of that home to estimate the potential for your property. Neighboring homes are best for deciding comparative prices.
The outside of a property can be measured two-fold, the exterior of the building and the surrounding land. For the direct exterior, it is important to inspect the walls for cracks to determine if there might be a larger issue of water collecting in the foundation. Above those walls is the roof, one should check the material and the hold up of the shingles or layers- roof replacements can be a hefty cost. In aÂ similar vein, check the windows to be sure they donâ€™t need replacement, which can be $200 per window. Beyond the exterior, it is important to notice the sidewalks and fencing to see if there is aÂ necessary improvement to be done. Often overlooked, is the yard and necessary landscaping, small improvements can drastically improve the image of Â a home.
The last estimator is to see the age of the utilities which includes water and electric. Is the water system connected to the grid? Are the toilets and showers well functioning? Etc.
Overall there are many factors in the cost of rehabbing a property. While a potential investor cannot possibly account for all possible costs looking into these three main factors will help you determine whether or not it is a good decision to rehab that property.
If you need a fast loan, Refresh Funding can provide Florida-based loans for individuals seeking Rehab loans for Fix and Flips. Refresh offers fix and flip rates starting at 9.99% for a 12 month term or rental loan rates starting at 7.99% for 36 month terms. We like to think of ourselves as your choice for Private Mortgage Funding & Lending. It is Refreshing to know that the bank is not your only solution– Refresh Funding.