Complete Checklist for Flipping a Property
August 14, 2023
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Property Flipping Checklist
As a house flipper, you’re an innovator and creative thinker. You know that investing in creative real estate strategies can lead to greater returns, and you aren’t afraid to take on a little risk to get you there.
However, even the best investors need tools and resources to organize the process. In this article, we provide a complete house flipping checklist you can use to make sure you’ve covered all the bases for your flip.
Why Are Final Inspections Necessary?
A thorough buyer will want to make sure everything is in order before they take on a new property. They may be a first-time homebuyer or another investor looking to transform the home into a rental property for new tenants. In either case, the property needs to fulfill housing, building, and health code requirements before it can be fully operational. It’s in both the buyer’s and sellers’ best interests to take time to conduct a final inspection –the buyer gets to verify that the property’s condition reflects that which was described in the original purchase agreement, and the seller gets to facilitate a smooth sale and demonstrate that all the agreed-on conditions and repairs were met.
How to Prepare for Final Inspections
There are a few different documents that you should have on hand to prepare for a final inspection of a flipped property. The seller and buyer should each have copies of:
- the original purchase contract,
- any inspection documents, such as those from health, housing, or building code inspections, and
- all documentation of prior issues and repairs done to the property.
If there are additional written agreements between the buyer and seller, these should be present as well.
At this point, the property should be up to code and have the proper repairs done that were agreed on. If there are new repairs needed or maintenance concerns that weren’t part of the original deal, this is often a red flag for the buyer that the property may not be in as good of shape as was promised.
House Flipping Checklist
A flipping houses checklist serves as documentation that a thorough evaluation was done of each room in the property and that the necessary repairs were made. For property inspection checklist rental areas like the kitchen and bathrooms, repairs are especially important, as these rooms are more heavily scrutinized by buyers, inspectors, and occupants.
|Mold and mildew
|Door and lock
|Door and lock
|Water damage and mold
|Cabinets and cupboards
Ceilings, Walls, and Floors
|Walls – paint, drywall, etc.
HVAC & Electric
|Hot water heater
|Security system (if any)
|Garage doors (if any)
|Gas fireplace (if any)
Landscaping / Exterior
|Siding or exterior finish
|Chimney (if any)
|Gutters and downspouts
|Washer and dryer
|Porch, balcony, or deck
|Wood fireplace (if any)
What’s Next in the Sales Process?
While it’s important to be thorough in your repairs and renovations of a flipped property, the above property inspection checklist is only the beginning. Frequent house flippers know that selling an investment property involves many other steps, including transferring the property title/deed and paying taxes on the sale.
Many investors also choose to hire a real estate agent to help them stage and market a home they’ve flipped. Real estate agents have greater access to resources than you do as an investor, and they can help you narrow your search to find the right buyers.
Tips for Facilitating a Smooth Sale for Your Flipped Property
Since flipping houses has gained a lot of attention in the past few years, many new investors are getting started with this strategy. Here are a few tips to make your experience flipping properties as simplified and straightforward as possible.
- Understand the approximate cost of basic repairs. One mistake new house flippers make is not having enough cash to cover the range of repairs a fixer upper might need. It’s essential to do some preliminary work to find out how much it will cost to replace flooring per square foot, get the property inspected, install new cabinetry, etc.
- Join social media groups or other real estate groups. These kinds of groups attract people interested in and involved in investing in real estate, so it’s a great way to build a network of like-minded investors or buyers who would be interested in purchasing your flipped home.
- Always get a professional inspection. Unforeseen complications in a property can cost way more than the price of a professional inspection. It’s best to invest up front for a professional to review the property, because they are trained to catch problems before they become future headaches.
Flipping homes is a popular investing strategy, but it’s not always a simple one. With the help of this flipping houses checklist and the tips above, you can conquer your next fix-and-flip with confidence and peace of mind.