This property condition review checklist will come in handy when you’re analyzing a potential fix and flip.
In the first step of your initial house flip due diligence, you estimate if the flip rehab will be light, medium, or heavy.
Now take your research further with this checklist that helps you review the overall condition of the house.
When you’re done, you’ll have a more detailed rehab estimate to plug into your house flipping analysis software and determine whether to offer on the property.
Walk comps to make sure they are similar to the subject property
Tour the neighborhood, visit open houses, and look at online photos of rehabbed sold real estate comparables, and note those features that are similar or different from the subject property.
Visit property and create a narrated video walkthrough
Take video while walking the property and narrate any issues you see of the exterior, interior, and any systems that might need repair.
This will allow you to watch this rehab walkthrough again and again to create a more detailed estimate of the subject property repairs.
Estimate rough rehab costs on major scopes of work
While you’re walking through the property, use this Rehab Walkthrough Estimation Checklist to get a basic idea of construction costs for major projects and replacement of systems:
- Siding and Trim
- Windows & Doors
- Decks and Pools
- Drywall Walls, Ceilings
If you need guidance on approximate costs for these items, this post will help: how to estimate your property rehab.
Enter detailed rehab estimate in property analysis to get offer price
Replace the first pass rough estimate you came up with in your Initial Due Diligence Checklist with this more targeted rehab estimate amount and calculate a new offer price.
Determine if gap between current asking price and target offer price can be overcome
Having visited the property and created a more detailed scope of work, determine if your offer is still attainable.
If gap cannot be overcome, move onto next property, otherwise go to next step
If your analysis passes this second test, the next step is to submit your offer using the House Flipping Offer Checklist.
You’ll also continue with the final phase of real estate deal due diligence, which includes running title, getting bids for the property rehab, and getting the property inspected.