Hidden Disaster That Can Torch Your Rehab Profits
Q: My business partner and I are looking for our 1st rehab property to fix and flip. What should we be careful of with respect to the condition of the property before we buy? Carl, Rockaway, NJ
A: The two most serious problems to be concerned with when you buy a property to fix and flip are structural and environmental problems. Because of potential structural or environmental problems, it’s a good idea to pay for a home inspection before you buy a property. Structural problems include foundation cracks and environmental damage may result from contamination from a leaking underground oil tank. A leaking underground oil tank can cost tens of thousands to remediate which can erase all your expected profits on a rehab property if you get stuck having to do the remediation. Consequently, it’s a good idea to ALWAYS pay for an oil tank scan before you buy a property, particularly one that you plan to fix and flip. Thanks for your question, Carl.
For more real estate tips and information visit my blog at geraldlucas.com.