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I have toured a few in our neighborhood with profits ranging from 150 to 300k. We saw them before and after and we were not impressed. Everything is put into flashy upgrades like kitchen redos. One, which sported a 200k increase, did not even have new windows. It was paint, carpet, kitchen, bathrooms the usual things you see on Flip or Flop. One, with a 300k increase, didn't have mirrors in the bathroom and the landscaping looked like Jungle 101. You would think for a 200k+ profit you could put in a few nice bushes. I would NEVER buy a flip, since all the ones I have seen have the cheapest upgrades and substandard workmanship. When we redid our house, we did it right. For a few dollars here and there, we were able to substantially improve our house over and above our original plans. For example 1k for solid wood doors, a few hundred for new window trim, a few hundred for wood pantry shelves, a few hundred for new bathroom floors, new toilets, etc. We changed things and didn't have to pay for installation like disposal since they were ripping out the old one anyway.
Buying house from flipper/investor ?
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Thanks for your replies to my threads.
I am finding many aged properties showing up as many upgrade/renovation as description.
These properties were bought low and listed for higher price by flipper/investor.
I did see couple of homes, I am skeptical about material/appliances quality for these houses.
I know that flipper/investor need to make profit .
Are these house good deal for home buyer ?
What are the red flags/issues to look ?
What are the masked risks on these properties
Thanks for sharing
In what way? I ask because our house came with the "cheap" Whirlpool-owned brand. I don't think it affects the value of the house and I'm not concerned about it breaking any sooner than a higher end range, microwave or dishwasher. The worst thing I can say is that the Dishwasher and Microwave are loud. It has a brand new Goodman brand HVAC unit. Is it the best out there? No. But I also understand that ultimately, I expect 12 years of service instead of 14, or something. The roof is new. I doubt he put the greatest shingles on there. But there's no evidence of water intrusion and the roof is new. Not a huge concern if the shingles last 15 years instead of 20.
I was concerned about the wiring in the house. The inspector looked at it closely and said there were no huge concerns.
The plumbing is often mentioned as a concern. ALl of the houses in my neighborhood have had to have their original copper pipes replaced. The pipes are probably 30 years old but work just fine, even though they're (GASP) polybutilene. I did talk to a plumber about the Polybutylene pipes and he said that if they're that old and haven't failed, I don't have much to worry about.
The windows in my house are original, and terrible. But they were right there for me to see when I bought the house.
When we looked at houses we looked at a handful that had been recently redone. The "lipstick on pigs" was usually painfully obvious; granite countertops, new cabinets, and little else.
In what way? I ask because our house came with the "cheap" Whirlpool-owned brand. I don't think it affects the value of the house and I'm not concerned about it breaking any sooner than a higher end range, microwave or dishwasher. The worst thing I can say is that the Dishwasher and Microwave are loud. It has a brand new Goodman brand HVAC unit. Is it the best out there? No. But I also understand that ultimately, I expect 12 years of service instead of 14, or something. The roof is new. I doubt he put the greatest shingles on there. But there's no evidence of water intrusion and the roof is new. Not a huge concern if the shingles last 15 years instead of 20.
I was concerned about the wiring in the house. The inspector looked at it closely and said there were no huge concerns.
The plumbing is often mentioned as a concern. ALl of the houses in my neighborhood have had to have their original copper pipes replaced. The pipes are probably 30 years old but work just fine, even though they're (GASP) polybutilene. I did talk to a plumber about the Polybutylene pipes and he said that if they're that old and haven't failed, I don't have much to worry about.
The windows in my house are original, and terrible. But they were right there for me to see when I bought the house.
When we looked at houses we looked at a handful that had been recently redone. The "lipstick on pigs" was usually painfully obvious; granite countertops, new cabinets, and little else.
Typically ceiling boobs and Home Depot's cheapest plumbing fixtures. Oh and sometimes Vinyl windows.
Typically ceiling boobs and Home Depot's cheapest plumbing fixtures. Oh and sometimes Vinyl windows.
Our house had some of that; we;re not particularly worried about the ceiling boobery light fixtures in the hallway and bathroom. We also replaced the cheap kitchen faucet. The shower heads we would have replaced anyway since my wife specifically wanted the wand-style with a water pick style head.
The work he did on the crown molding, refinishing the hardwoods that had been covered for years by carpet, the tile in the kitchen, the new tile floor in the bathroom, all were nicely done. The notable "Cut Corner" was the granite in the kitchen which he didn't seal.
People equate making choices WRT ROI with corner cutting or hiding problems. Making a choice to spend money here, and not there, or not buy whatever grade fixture one deems appropriate, doesn't equate to masking a problem or cutting corners. It certainly could, but not always.
If the previous sale occurred less than 2 years ago I wouldn't touch it, especially if it was less than a year or six months ago. Let the flippers lose their shirts. I worked as a tradesman for awhile and have seen what the flippers put into those houses: the bare minimum, and really just lipstick on a pig. They'll do a nice job with paint, hardwood flooring and tile in the bathrooms......but you may or may not have insulation in the walls, they old wiring, plumbing and ductwork is still going to be ratty, and even things like structural issues (like a cracked foundation for example) are more likely to be smoothed over rather than truly addressed.
Thanks for replies. I found a house that was initially built in 1942 with recent renovation by flipper. He says
"The entire property was renovated from the studs out. The only items retained from the original home are the structure itself.
The roof, electrical wiring and panel were all replaced by the previous owner within the last 5 years.
Gorgeous kitchen with modern cabinets, upgraded counter tops, & back splash. Kitchen also features an island and all stainless steel appliances, including a gas cook top. Option to dine at the island or in the connecting dining area. Gorgeous custom tile work in both bathrooms!"
I found a house that was initially built in 1942 with recent renovation by flipper. He says...
Post #3; same recommendations.
Quote:
Originally Posted by MrRational
No. They are almost uniformly a bad idea.
The exceptions are the ones that are a very bad idea.
Focus on New. Fairly new. Unaltered old. Stable safe neighborhoods.
If you can't afford to buy what you want where you want it to be at the market price in that area--
either accumulate more purchase cash, or earn more income, or move where you can afford to buy.
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