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.
Bathrooms
Item
Repair
Cost
Faucets/sinks
Showers
Tubs
Toilets
Plumbing
Fans
Mold and mildew
Mirrors
Cabinets
Outlets
Door and lock
Total
Bedrooms
Item
Repair
Cost
Overhead lighting
Outlets
Door and lock
Windows
Closets
Total
Kitchen
Item
Repair
Cost
Sink
Garbage disposal
Oven
Stove/burners
Exhaust fan
Refrigerator
Freezer
Microwave
Dishwasher
Water damage and mold
Cabinets and cupboards
Countertops
Other appliances
Overhead lighting
Total
Ceilings, Walls, and Floors
Item
Repair
Cost
Ceilings
Walls – paint, drywall, etc.
Windowpanes
Window latches
Window trimming
Flooring
Carpet
Insulation
Ventilation
Total
HVAC & Electric
Item
Repair
Cost
HVAC unit
Hot water heater
Electrical wiring
Outlets
Circuit breaker
Security system (if any)
Garage doors (if any)
Overhead lighting
Furnace
Gas fireplace (if any)
Total
Landscaping / Exterior
Item
Repair
Cost
Roof
Siding or exterior finish
Chimney (if any)
Plants/trees
Mulching
Driveway
Sidewalks
Fencing
Mailbox
Foundation
Gutters and downspouts
Structural issues
Total
Other
Item
Repair
Cost
Washer and dryer
Utilities closet
Porch, balcony, or deck
Attic
Wood fireplace (if any)
Total
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.
Conclusion
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.
