I Have an Idea!

OK, so I am no Donald Trump.  First of all, I have all of my own hair, but more importantly I don't have gobs of money to invest in real estate....yet.  So I can't flip another house just yet.  But what I can do is shop around for them and then showcase them for you.  Have you ever thought of flipping a property?  Fearful of the outcome?  Not confident in your cost estimating skills?  Can't find the diamond in the rough?  Well, let me do it for you!

Each week I will scour through the MLS, Grapevine, Ziglu, ComFree, and whatever else there is to find those gems just waiting to be renovated so they can showcase their true beauty....and make you some money!  I am so confident in my abilities that if you choose to buy one of my "picks of the week/month (depending on the season)" I will act as a consultant for you throughout the process.  If you lose (or just break even), I get nothing.  If you win, I get 0.5% of your total sale price.  Deal?  Now give me a weak or two to check that out with my lawyer.  This won't be the first crazy thing I've ever tabled.  But that's why I pay him the big bucks...to figure out my crazy ideas and make them work!

If you are not from my area I think the reasons for buying a particular property still apply no matter where you live so you can still use my picks as templates for other areas across the country or around the world.  For example, the top 5 things to look for are:

1. Solid Foundation - the foundation is just that...the foundation of the house.  It's critical and can be very expensive to fix.  I read somewhere the other day (I wish I could credit whoever it was, but I forget) that one in three basements in Ottawa leak.  Wow!  That's crazy.  This is something that has to be checked and double checked because it will come back to bite you in the ass when your buyers' home inspector discovers it.  This is a deal breaker for many buyers.
2. Neighbourhood with potential - if you want to flip a house you need to buy in a sought after neighbourhood or be able to predict which areas are on their way to being sought after.  Problem is, the sought after neighbourhoods usually command higher prices but if you can find one in really rough shape it could be worth it.
3. Curb appeal - always helps.  After all, it's the outside of the house that people see first.  Problem is when you are flipping a house you can't usually afford to rip off siding for example, and replace it with brick.  This type of renovation is usually too costly.  Therefore, look for a house that is clean looking and could be jazzed up with a new front door, for example, or some simple landscaping.
4. Windows/Roof/Heating/Cooling - if any of these items are in need of replacement  this could be a big hit to your wallet.  If you are flipping a house you need only make sure these items are not causing damage to the house (i.e. leakage).  You can get away with "older" windows, roofs (did you know I checked and it's not "rooves"?) and furnaces but they can't be too bad because the buyer will try to knock money off your selling price to cover the replacement costs.
5. Layout - and more importantly, support walls.  You might have a crappy layout but tearing down a wall or two is actually not that costly and can have a major impact on the appeal of the house for buyers.  But you can't tear down a support wall (usually) so if you have plans to make rooms bigger or create that ever-so-in-demand "open concept" you need to find out which walls are support walls.  Fortunately, it's usually pretty easy to tell.

So there it is.  My idea of the day.  But seriously, if you have ever thought of flipping a house and just haven't taken the plunge.  Now is your chance!  It's Friday today so stay tuned for next weeks "pick of the week".  I will visit each property multiple times if I have to and make sure I have a comprehensive breakdown of what I think the house needs and what I think it will cost.  I will share why I think it would make a good flip and things to be cautious about!  I love it!