What to Look For When Buying an Investor or Flip Home, Pt. 1

If you’re in the market for buying a pre-owned home, there’s a good possibility one that catches your eye was refurbished by an investor. Also known as flip homes, these remodeled residences bring new life to older houses. Most flippers focus on eye candy updates to attract buyers. This includes fresh paint, new flooring, tile, bathrooms, kitchen, etc. Investor rehabs give buyers an opportunity to by an updated home, in established communities, at an affordable price. These homes also help revitalize older neighborhoods by attracting younger buyers. Many investors take pride utilizing their design and remodel knowledge to transform an eye sore to a gem. Unfortunately, some investors cut corners to maximize profits by disguising or not addressing problems.

Focus on Foundation

I’m starting a blog series on what to look for in buying an investor or flip home. I’ll share my own experience and talk to experts in home remodeling and construction business. Susan Jaime is the owner of SJ Construction. She’s licensed, bonded and insured in all things home improvement. Susan says it all starts from the ground up with the foundation. San Antonio is notorious for pockets of shifting soil throughout the city. Because of time and cost, some investors avoid correcting a shaky foundation.

“The foundation should be as important to you as the design of the kitchen. Why? Because it will be expensive to fix,” Susan said. “When visiting a house look for uneven points in the floor. Do you see or feel a drop in a bedroom or any other areas of the house?”

Drop and Roll

Depending on the flooring, these drops may not be easy to notice. Susan has a simple solution to identify a slope in the house.

“Keep a marble in your pocket and put it on the floor,” Susan said. “When it rolls out you can see how much of a slope you have.”

Susan adds some roll may not be a big problem. Variances in foundation levels are quite common in San Antonio.

“Through my experience, there’s going to be some soil settlement in San Antonio which could lead to some acceptable levels of slope with foundations.”

Consider Hiring an Expert

How much drop is tolerable? Susan prefers no more than two inches. I’ve seen a licensed structural engineer certify a foundation stable with a five-inch drop. If you like the home but question the foundation, ask the seller to provide a structural engineer’s report. If they balk, you can opt to pay for one during the option period. Home inspectors are not licensed structural engineers. If you love the home and there’s some doubt about the foundation, consider making the investment in a structural engineer evaluation. With data in hand, you can negotiate a repair with the seller or walk away without any doubts.

Which Foundation?

Slab or concrete foundations are more costly to repair due to the labor involved to lift the foundation. Pier and beam foundations are easier access under the home to shim and level. They are typically less expensive to correct.

Flippers almost always patch and repaint cracks in the walls and ceilings so it’s more challenging look for this sign of settling. So, keep a marble in your pocket and let it roll to help determine if the foundation needs a closer look. Have a question on buying a flip home? Contact me. I’m happy to help.