Below is a list of things to look for when viewing potential investment properties.

• Price - As many in the industry know, you make your money on the “buy”. Before looking at a property, make sure the price is well below  market value. Make sure the price is lower than that of comparable homes and make certain it can be fixed, held, and any fees & commission can be paid and still make a profit.

• Foundation - Foundation issues are uncommon in Bellevue, but it should be one of  the first things you look at. If there is foundation damage you need to see how much this is going to cost to have fixed.Foundation damage can drain a budget so until you are comfortable with you skills at judging the amount of foundation damage call a pro for a quote and then factor that in your budget. When looking on the outside and inside of the house you are looking for cracks above windows, along brick mortar, over doors, and in corners, and many times you can feel the foundation sinking in certain areas of the house. Be sure to walk to the corners on the rooms and you will be able to tell if the piers have sank

TIP: It’s a good idea to have relationships with foundation specialists that are willing to come to potential investments and offer free quotes.

• Roof - Next, check the roof by counting the layers of shingles. Normally if there is over 2 layers of shingles you are going to need to replace the roof. Also, as you are walking through the inside of the house look up at the ceiling and look for water spots. This is also a huge indicator that you are going to need to replace a roof. Your foundation and roof are normally your 2 biggest expenses.

TIP: Use websites like Angie’s List or Superpages to find reviews on local service providers and contractors. An experienced Realtor is also a good source of information; many real estate offices keep a list of recommended companies.

• Walls - Look for holes or damaged sheet rock that is going to need to be replaced. Drywall is cheap and not a big deal, but does cause a lot of buyers to run away from the property. I love houses with holes kicked in all the walls. Holes = Money

TIP: The most important tip – whenever possible, hire a licensed home inspector to do a thorough inspection of the property. And always “buyer beware”.

• Electrical - Look at condition of breaker box. If you are going to add something like a A/C unit you might have to upgrade the electrical, so you need to keep that in mind. Next if the power is on to the house you can check the lights and buy a cheap power test that you can plug in a wall to tell you if it has power, and you can get an idea if the house has electrical issues.

• A/C and Heat – Check to see the age and condition of the air conditioning unit in the potential flip so that you can see if you might have to replace them and leave room in the budget if you think you might have to replace the unit.

• Cabinets & Counter Tops - Look to see if you can use the old ones or if you are going to have to replace them all.

• Plumbing - Make sure the toilets will flush and water will run. The water heater is normally off (in foreclosures) so you can’t test it, but you can look to see how old it is, and that will give you a ideal if you are going to have to replace it. See how many faucets, toilets, shower heads, and other plumbing fixtures you might need and factor them in the budget. I normally replace almost all the plumbing fixtures to give the house the new look.

• Flooring - See how much of the flooring needs fixing or replacing. If possible, always refinish hardwood floors, and put down ceramic tile. If there is no hard wood,  estimate the cost for carpet.

• Paint - Don’t forget to price painting the interior and exterior.

• Appliances - Replace all appliances to create a crisp look and “new” feel in remodels.

Local Appliance Stores
Albert Lee Appliance – Opens in Bellevue Today
Crossroads Appliance – Also have clearance warehouse
Arnold’s Appliance
Home Depot
Sears
Lowes