DIY Inspection VS Professional Inspection | Flipping Houses

Okay, today we're out in the field and I'm going to show you my process, what I look for in a potential flip. Coming up next. Okay, we found this property on the market, and if you want to know how I did that and what keywords I use, you're going to need to click this scrolling thing up here. Before we begin, make sure that you like and subscribe to make sure that you're living the life you've always wanted through real estate. I made this channel to help you, the new or experienced investor. Okay, so, um, we're in Mission Viejo and this is a condo. It's a 2-bedroom, 2-bath, uh, about 1,200 square feet. And if you calculate that out, it's like $490 a square foot. And it's really mind-blowing because a couple years ago this would have been $300 a square foot. It's been on the market 20 days. It had a renter in it during that time. The renter just left, so now we have more access, we have easier access, and we came out, used the lockbox key to get in. So I haven't been inside, so let's go take a look, see what we find. Okay, um, I guess we'll start in the living room here. And you can see that the carpet is old and dirty. The walls actually don't look too bad. This is a rental, and usually the landlords paint the inside white in color, and that's what you see here. The fireplace has literally probably the original tile that it came with. This is something that I would take out and put in some nicer tile in there, and I would probably put some vinyl plank down on the floor literally all the way through. It looks like it's got a little patio out here. So you got a slider and then a little patio out there. And looks like it's overlooking the pool area, so that's either good or not good depending on who's going to move in here. Pools tend to create a lot of noise, so again, it depends on who's going to move here. These are plantation shutters. These are an upgrade. As long as they, they look nice and they're functioning, it is an upgrade. So That's kind of nice that it has that. We'll move into the kitchen here. So you see it's got some wood flooring down. I would have done it throughout. You got the washer and dryer here on the side, stackable washer and dryer. Looks like it's probably not working. And then you've got the stove, you got the microwave. These cabinets— They're nice. Are actually not too bad. I would probably paint these cabinets and put some new pulls on there. As long as the hinges are hidden, it just shows that it's a little bit newer. I would even say, you know, you might be able to get away leaving this countertop and just cleaning it up. It is granite. Definitely new appliances in here, so new appliances and This has got to be fixed because it's just, that's just hanging out. It's not, not a big deal, but again, I would paint these white. I would put better bulbs in these can lights that are up there. I don't like them. And again, probably end up painting, painting the whole place even though it's, it's white. Let's see, it says all this down here. Is there a bedroom back there? Yeah, closet. So it looks like there's a bedroom down here and a guest bath area. So this is a condo. I wouldn't really do much in here. Probably put a new toilet in, put some new flooring down. I'm not really thrilled with, uh, with this vanity. I would take this vanity out and replace it, put something brand new. And these— this mirror is just— this is a builder-grade mirror. I take that out and just put a round mirror right here. Everything else, honestly, I just leave it like that. I don't like this, uh, hanging down like that. But it's, it's probably more expensive just to take it up to where it should be because it has the nicer lights in here. You just need to get better bulbs. I would honestly, I would leave this like this. Now this, all this has these flat panel doors. I don't like flat panel doors. I would replace these doors with the 6-panel doors. But if you're just trying to get away with some cosmetic work in here, Then you leave the doors where they're at. This could be a big concern for a new potential buyer. All this literally dirt down there, it just doesn't show very clean at all. That all has, has to be cleaned out so that when the home inspector comes in, he sees it all clean like somebody actually took care of it. The water lines actually don't look bad at all. There's usually some corrosion around here and here, and in these areas there's corrosion, but everything looks good. Everything's sturdy in here. Not that you want to leave a bucket like this in there, but everything in here actually looks good. It's just the pan and the dirt down there, and that's kind of normal after a while. As you come into the bedroom down here, Again, it's got a sliding door, and then you've got— you can see the pool better from up here. You've got a view of the pool up here, and then this one has a walk-in closet, which is kind of nice. So you got a nice little walk-in closet here, light fixture. Just, you know, so far what I'm seeing is probably around $10,000 to do. We haven't been upstairs yet. Here's the circuits for everything inside the house, and all that looks like it's in good shape. Nothing wrong with that. Let's take a walk upstairs. On the stairs, I always like to leave carpeting. If you put any other type of flooring material, it's just a trip hazard. You can slip down there. This has just white doors here. I would replace these with mirrored doors. They're not that expensive, $150. Why this is here, all that would be removed. I'd take all that out. There's no reason to have that. Then you have, you know, a view. Not that you can do anything with it. That's The roof there, which the association takes care of. And this is honestly a little bit strange in that they've opened this area up to downstairs. You can define this as a bedroom and probably not at this point because the definition of a bedroom, it has to have a door. It has to have a window, it has to have a closet. Oh yes, we did have a closet as we walked in, so this is definitely considered a bedroom. And then you have what I call your banjo sink. So this is original builder grade with this over here. If you take that out, you can play it like a banjo. Again, I take this mirror out, I just put a nice little round mirror here. In this bathroom, I honestly do not see a lot of work. I'll let you come in here with the camera. I'll step out, but you can reglaze this area, and I would reglaze it white. It looks, it looks dirty. It's not dirty, but I would reglaze that area there, and it would literally look brand new. So from what I'm seeing, here, and that's why I like condos, is condos are really, really simple to, to do a fix and flip on. We're talking maybe, I mean, $25,000, $30,000 at the most to put flooring, painting, reglaze, uh, paint the kitchen, fix, you know, a couple of things here and there, and you're back on the market. I would leave all this stuff Up here just like it is, all the window coverings just like they are, and I would, I would put this property right back on the market and try to get it sold as soon as possible. Now what you have to understand is in today's market, and I'm not talking 6 months ago when this would have just flew off the shelf, they started this at $615,000, they're down to $599,000 down. I'm thinking at least 10% hit for the current interest rates and stuff. So at $600,000, let's say 6.5%, that's $60,000. So, you know, maybe $540,000 would be a good starting point to buy this property. I wouldn't pay much more than that. You have to get the seller to realize that it is a changing market. It is absolutely changing. And so his property is not worth as much as it used to be. He's 3 or 4 months late to the game, and obviously it's a fixer as well. Do you need a professional home inspection? And that's really up to you. If you, you know, are buying this property and you just can't sleep at night because you didn't get a home inspection, they're not that expensive. Get one. I don't get one. The reason is because I've been doing this for over 40 years, and I can look around and tell you, You know, this is going to be an issue, that's going to be an issue. We just did a walkthrough on this property. There are no issues here other than the water heater that I mentioned, the dirt down at the bottom. It's just not looking nice and clean and professional. The home inspectors are here to ding whatever they see, and if they see things like that, they're going to write it down that, you know, have somebody check this. Okay. So again, home inspection is really up to you to decide how experienced you are and whether you need one or not. This property, I don't think you need one. If you're new to investing and you want to know 4 reasons why you're going to lose money on your next flip, click on this video right here. If you have any questions, feel free to reach out anytime. All my info is in the description box below. I'm always here to help.