Any old homes can be electrical nightmares. Uninformed just want pretty and dont realize the cost of upgrading wiring and panels and plumbing. Those pretty finishes will often have to be torn out to fix the old stuff behind the walls. If people were better informed these old houses wouldn't sell for nearly as much. It's more expensive to replace existing electrical and plumbing than it is on a new build that's why nobody does it unless it's a high property value area with no new construction.
All*. We live in a Kardashian age... Perfect on the surface but rotten underneath. This applies to food, furniture, clothing... Just everything nowadays
Retired licensed architect / builder / remodeler here. Jackie your comments are spot-on! I always got necessary engineering, take lots of process photos, provide architectural drawings, submit for building permit & construction inspections, hire licensed sub-contractors who pull their permits, etc. It takes time and money to do the job right, but you can provide full documentation to buyers .....and sleep at night!
Yep. You are much better off to buy the fixer upper and do the upgrades yourself - with professionals who know what they are doing. And can be held accountable.
Sadly, many flippers know how to conceal defects so that even an inspector cannot find: they only inspect what can be seen; they don't know the condition of walls if new drywall is installed over it.
The incompetence of inspectors is awful. They just send bank employees. Ok the woman with the degree in commerce is going to ask the teenager left home to open the door questions about the roof. That’s the inspection. ( I was said teenager).
This is 💯 true!!!!! We bout a flipped home and didn’t even live in the home for 6 months yet and already had to dig into our emergency fund to fix the home that they didn’t fix correctly about 50k already and still more to fix. Inspector missed ALOT of things which was bad for us and good for the flipper. Avoid at all cost!!
My inspector missed issues with the windows. Minor issues thank God but still felt like I wasted money paying him. Windows are one of the first things you look at.
We bought a flipped house at a lake in the California foothills, 3 bedroom, basement, cottage on the property with 1.6 acres for $50k cash. My husband is a contractor, we KNEW there was some issues to be fixed, the carpet was cheap and even had a stain, old windows, they pulled down the old rotten deck and just made steps with a small platform to get in. We KNEW. Don’t care. We built beautiful decking, replaced all the windows, just renovated the kitchen to include all new cabinets, a laundry/pantry room, all new light fixtures. We bought it for the long haul, not the short term. We rented it out for 4 years, what we made in rent literally paid us back our original $50k purchase price. It’s all free from now on!
In Ontario, Canada you only need a 4 hour course to get a licience. My daughter and her husband bought a flipped home with an inspector recommended by the military. Furnace no good. Needed to be replaced. Major hole in basement wall hidden by a bookcase. Found first rain. I can not even start to describe the plumbing under the kitchen sink. Never saw anything like it before. Major leaks. Parts did not even fit together. And the home inspector was not liable for anything. Learn to do your own inspection. Have a list and check everything yourself. I did that for our retirement house. I collected the water for the well inspection myself and had the water tested. Part of the condition for buying was the wood stove met codes. Necessary for insurance. Yes, it needed some work, but we bought it knowing exactly what we needed to do over the years. No big surprises.
@@shanagaskill3473If you are buying in an hoa get your head inspected. Never buy in an hoa. Even a good one can turn ugly with 1 bad election. I have seen it.
Thank you for this video, and the other ones you create. The subject is not negative, it is reality. I am in the early stages of looking for an older home to be my retirement home. I have owned and inherited property in the past. Here are some other important things to look out for: 1. Large cracks in the foundation. 2. Hidden buried oil storage tanks on the property, 3. aluminum wiring, 4. uneven floors, 5. condition of the sewer line between the house and the city's hookup (the inspector will not check this) 6. Radon, 7. Previous insurance claims on the property, 8. Asbestos wraps on heating ducts or asbestos tiles. It is best to view houses in the rainy season to look for drainage problems on the property and leaks and water or moisture damage, not when it is nice and sunny out.
I recently bought a house. We were living out of town, but came in for a week to look at houses with our realtor. It was raining like crazy all week. One house we were viewing had just finished a basement remodel. The basement had new hardwood floors. We walked down to the basement and saw a huge puddle in the middle of the brand new floor. Thank goodness for the crazy rain that week! Needless to say, we quickly walked away from that house, after our agent had the fun of telling the listing agent about the flooded basement.
You can buy a brand new home and they are pure crap. Terrible construction. So I think you’re taking a risk with both the flipped house and a new house. kind of both sides of the same coin.
Small inattention to details are a huge red flag. If there's a cabinet door mounted the wrong way, no one took time to change which direction the new fridge opens, or a light switch located behind a door (especially going down steps) are all small things that were quickly overlooked and there's likely bigger issues they ignored as well. These are all things I've seen recently while looking at houses. I've seen bigger issues as well but it's the small things I usually notice first.
We flipped how the door opened on the guest room of our retirement home. We bought it from the first owners, so it was built that way in the 90s. We have the marks on the doorframe where the hinges use to be, painted, so not as obvious, but you can flip on the light without going around the door.
Some of the cheaply flipped homes I have seen online, you can see that they either didn't install trim around the cabinets or did an uneven job. Another quirk of many cheap flippers is the new stainless steel appliances still have plastic wrap on them.
I agree, but you know what other types of houses have problems?.... Owner occupied, that didn't do an update since the late 70's, but think their house is amazing because they're emotionally attached to it.
Made the mistake of buying a flip this year. You don’t see how crappy the renovations are until you move in. The tub had a diy epoxy on it only designed to last a short time and it’s already peeling after six months. The exterior paint is cheap so the porch and patio paint has already worn off and looks terrible. They likely slapped it on before listing the house. Cupped floors. Cheap LVP flooring. Seams showing everywhere. Shoddy window installation that the inspector did not catch. Just crap. And like I said a lot of it you won’t really notice until you move in, start placing furniture and spend more time in the house day after day. The wild part is my old apartment in the hood had better renovations and appliances than my house. I understand why people just rent.
@@xro1983 I wouldn’t sell it. I’ll rent it. But I have to decide if I want to rent it out while I get a cheap rental somewhere else or just buy another house that I like more. I have to see how the market moves and where I am financially when housing prices drop. Also, I should mention I know I made it sound like it’s a total dump, but if you saw the house, you would think it was nice for the most part. Like I said it’s living in it everyday is where you see they cut corners with the renovations and some of the issues with the flooring.
Jackie -- your advice is so CORRECT!!! In our area of northeastern Massachusetts, there are so many flipped houses that were dated and run-down properties to begin with, getting snapped up by LLCs for cheaply-done "renovations" to look snazzy, but their flaws get concealed and do not get corrected. My hubby and I (he's an engineer skilled in Master carpentry and licensed electrician) cannot believe how many buyers out there who are so easily duped into paying $1M+ for otherwise basic 1940s through 80s spec houses. Of course, the LLCs get dissolved soon after, their cosmetic fakery does not last, and the problems in the hidden areas -- such as wiring, roofing, plumbing, water damage, etc -- get exposed.
I am a 14-year-experienced GC, I do all my renovation work in Manhattan NY. "Never buy flip"! Even the flip TV shows cut corners here and there... Cut corner list: 1. Wrong size/type of electrical wires, the wrong type of electrical box, use of non-licensed electrician, wires are not properly grounded, works done without electrical permit and inspection 2. Wrong type of pipes, drain pipe pitch are not to the code, works done without plumbing permit and inspection 3. Support walls are removed and replaced with under-size headers and without support base/footer to the basement 4. Bathroom installed without or improper waterproofing 5. Least expensive tile mud setting materials are used, tile installation never lasts long 6. Least expensive plumbing fixtures are installed, need to deal with leaking issues regularly 7. Windows are installed without/improper insulation and waterproofing. 8. moldy/rotten wood/sheetrock is painted over to cover. 9. wood floor installed over the existing old floor 10. water was mixed in the compound to install joint tape, and the joint tape will peel in a few years To fix all the issues above, you need to demolish the whole house and redo all the work again.
If the price is right and if you have the funds budgeted for the work, and if it doesn't need to be move-in ready, then I completely agree. I think the problem is most buyers are only interested in turnkey properties that have been recently updated and move-in ready. They aren't interested in undertaking renovations themselves. If it needs more than just cosmetic work, like structural, electrical, plumbing, etc., you need to fully understand what you would be getting into.
I think HGTV gave everyone or every first time home buyer the idea that they should be walking in to a home that has rain shower heads. Look kids, that’s your second or maybe third home… you see it on tv and it truly gave people a false sense of the world of home ownership!
I bought a home built in 2002. Not horribly outdated, but had original builder-grade finishes everywhere. Found an amazing, former general contractor I hired to make upgrades and improvements each year since 2021. Paid for it with a slush fund I saved and replenished over time. Takes money to be a homeowner, beyond the closing costs and PITI.
Glad you mentioned that flippers don't know about bad neighbors. One bad neighbor can make your life miserable. On the other hand, a homeowner wanting to sell their house may not tell you about their neighbor from hell. What's the solution? Maybe go around the neighborhood and knock on doors...
So true on every point. As a single female i was looking to buy my first house at 57. My realtor was "the goat" of the area I wanted to live. But one house she showed me that was a bit more than I wanted to pay was a friend of hers who was a developer. The back yard was jacked up with a lot of unmaintained koi fish ponds and lots of large rock and over grown grass. The fence was a mess. There were closet doors missing that just drives me crazy. And the screens in the windows were torn. Plus I worried about the skylight. The living room was nice. The bathroom was overly done with some crazy shower stuff that probably would impress folks looking at it but seemed like a repair nightmare to me. He bought this house super cheap and had been renting it for 2 years. Now wanted to sell it. I came to find out he had made no upgrades or repairs in 2 years. Come on, buy a closet door. Lol. My realtor told me he would be willing to remove all the rocks from the backyard and kept praising the newer pella windows. But he should have replaced the screens just as a small basic thing. I got the feeling there were going to be a lot more repairs other than fresh paint and flooring in the kitchen. It was a quick no, especially if I was going to be spending more of my cushion $ on the purchase. I ended up going with a smaller home that had been lived in for 20 years, they had upgraded some things but not others. I am more fine with this than the other scenario or where I see the flipped renovation with the low end kitchen counter, low end new flooring, etc. On those I looked at like that I knew I'd want to take the new stuff out, but wouldn't be able to for quite a while because I already would have paid more for them included in the higher purchase price plus wonder about the other structural things.
To say I agree is an understatement. My husband and I bought a flipped house 7 years ago. Let's see if I can remember everything that's gone wrong.... shower failed inspection because it wasn't waterproof (really!), so they rebuilt it. That one failed 3 years later. The electrical was unsafe and a fire hazard... that cost us about $2000. They never installed the porch overhang so we have an open permit (the house appraised low so they didn't finish it). My bathroom sink has never had hot water and the plumber we hired can't figure out why. They used furring strips instead of studs so there is little to no insulation. They replaced 2 windows; the rest are 45 years old and leak air. Tile work sucks- no mitering around the fireplace, grout on the backsplash tiles that didn't get cleaned off, grout missing where it meets the counter. Second bathroom has one light- a fan/light combo- for the entire room. AC is inadequate for the size of the house- we've spent about $5000 on that and it's still not fixed. I know there's other stuff, but I'm exhausted just listing all of this.
Flippers usually cheaply 'upgrade' or repair homes to increas the home's value so they can turn a several thousand dollar profit.. Which will then cost you more to undo their damage.
Wow 🫢 I will most likely never own a house because I am single and lower on the pay scale but can we just talk about how ADDICTIVE your videos are?!?! I'm hooked, and have learned a wealth of information that no one has ever divulged to me before. I love your channel, I'm subscribing even though I'll probably never be able to buy a house (your videos are THAT good)
As a quality-oriented craftsman/GC, I gotta say; I agree with ALL this. People really need to do their due diligence and stop being wowed by the superficial. I'd say MOST flippers are, well, scum. People really do need to watch out.
We have a painted brick house in our neighbor that was bought by a flipper. The original color of the brick was a green color but had never been painted in 25 years. The paint had badly oxidized and was chartreuse! We watched the flipper put one coat of white paint on the house. We were flabbergasted.
@@michaelb.8953 They used left over bricks. When they were building the house, none of the bricks matched at all! They did this purposely to save money knowing they were going to paint them. We have a lot of painted brick homes in my area. I love the white ones but upkeep would be expensive when time to paint again. And the white paint begins looking dirty (especially towards the ground) so I avoid them. But a white house with black gutters and window can be so beautiful!
As an electrical contractor, I have seen many “flipped” homes. As a consumer, they terrify me. Here’s why: You can hide a lot under vinyl siding and nice drywall. While “profit” is not a bad thing, it takes time to fix things. “Flipping” involves selling the house much faster than you could if you actually fixed something. There’s a reason for vinyl siding: That’s how you cover up damaged siding, or address lead paint issues. It’s safe to assume the vinyl was simply slapped over the existing mess, rather than removing the bad stuff. I suspect the same logic applies to the sudden popularity of metal roof coverings. Ditto for drywall. All manner of problems disappear with a piece of drywall.
Actually a metal roof lasts much longer. Most come with 50 year warranties. Unfortunately if flipping you do not get the cost back. It is cheaper to fix damaged parts and put up cheap shingles. My sister decided on 25 year shingles as she is 75 and has no plans of moving unless forced to. Half the price. My daughter and her husband went with shingles as they hope to move in the next 5 years. Will not get the return on metal. The people going with metal roofs plan to stay long term in their homes or pass them down to their children. We have a metal roof and love it. It was one of the things on our wish list. It has been threw several hurricanes and nor easters and is still holding tight. The couple we bought the house from had planned to live here much longer when they added the metal roofs to the buildings.
I don't know why I'm watching this knowing that I'll never be able to afford to buy a house, I guess I just like learning about houses just in general 😂
Flipper's don't buy well maintained houses to flip. They buy cheap, neglected houses that often no one else would buy. Check to see if there are photos from when the house was listed and then sold to the flipper.
@KimberFarms This sounds like an either or fallacy. Letting them rot vs. flipping them are not the only options. You can also not buy them yourself, or the repairs and upgrades can be done properly. If you can't afford to do the repairs properly, it sounds like Jackie and others here in the comments, wish these house weren't just flipped, but fixed properly and after seeking the proper permits, because they are legally required. Of course it all takes money. But here in the video, Jackie is highlighting how people sort of cheat the buyer by covering up known issues that blow up in the buyer's face because it was not actually addressed, or the flippers focus on the house's appearance and not its bones and organs, so to speak, when they are actually compromised, again, distracting the buyer with a pretty facade and not a good value.
As a lender myself, I have only seen a couple of your videos but I can say confidently that you are among the best of the business. Transparency has gotten mirky in our industry and most agents fail to truly understand all of the complexities of the industry from zoning to building to lending and beyond. Keep up the good work!
Our old neighbors got foreclosed on and flippers came through. The new neighbors undid most of the renovations inside. They said they knew going in that they didn’t like most of what they saw, but just wanted the house and knew some guys/had the money to get the house how they actually wanted it. In the process they found that some old trash among other things was left in the walls. Things like old report cards, receipts, etc. Just hidden behind walls
As we are only about 1/2 hour from the Chicago suburbs where houses are easily 2-4 times more in cost than they are here, people will quickly renovate a junk home in a bad neighborhood and market it around Chicago. If research is not done, the poor buyer gets stuck with a lousy house and a bad area, too.
You're so right! Years ago when I was looking at homes in Miami, these flippers would buy up old houses, put on a red door, paint over termites, new floor, cabinets, new appliances and they expected to make a $200k profit! Everything else was crap!
Jackie, I have a CPA firm that specializes in real estate. This was an excellent video. One thing to add, In terms of advice to people who are thinking of buying a flipped home, is to make sure you get references of the past five families that bought flipped homes from the same LLC or contractor. You'll be surprised how many unscrupulous contractors will not give you the names of other people they sell flipped homes too. But this is a very important step to get an idea of how reputable a contractor flipping might be.
Tips to identify a flipped house. They are showcases for homedepot cheap moldings and doors. Look at the new cabinets they dont usually waste money on fill strips so cabinets are too close in corners and doors can't swing fully or a can't have a handle. Check that they doors don't ghost open. Alsoccheck the threashold the tile guys usually take shortcut.
As a realestate investor. When I flip I focus on replacing important things befor I even consider granite countertops. The problem is not the investors its that buyers care more about "pretty" than functional.
Some people we know recently bought a flpped house. The broker that we listed our home with, said he had been in this house. The floors were very spongy--with a bad foundation./ The flippers did something to shore it up until it was sold. It had the requisite re-done kitchen and bathroom. I wonder how long it will be until the problems come out
I bought half a duplex that was flipped, shamelessly. Pretty much everything you said applied. Of course, this was December 2021, I was 1 week away from eviction and inventory in my area was virtually ZERO. I had no choice. Am paying it off in 2 years via investments cause there's no way I'm paying double the interest for this dogshit.
I build multimillion dollar houses and flip houses as a fun side hobby. Exact same high end skilled contractors. I would be happy to live in any house I flipped. We install new plumbing, heating and electrical as well as cabinetry, flooring, trim, tile ect.
@@sheneedsme I personally wouldn’t buy a flipped house. I would rather buy a fixer upper and have it fixed to my liking. That way, I know exactly what is done to the house and dont have any risks from buying a flipped house. But I can see some people who just want a turnkey property.
Sure, you’d make sure yout flipped house (fixer upper really) has the quality to your liking. But if it’s a flipper (to sell) I doubt you’d put the same effort
Your one of the good ones. In my area, large city, SC, these llc and other flippers are scarfing up mill hill houses that have sat for over 50 yrs, half ass renovations, slapping a $500,000 to 1 mil tag and calling it "new"😮 and the majority of these are in the ghetto, just saying 😊
Excellent video! Like you said - the majority of flippers cut corners to get maximum profit. A buyer may inherit a TON of problems, and the inspector can only judge by what they see.
Last 4 flip homes I looked at had 15-20 year old furnaces. I have 8 rentals. I flip to rent knowing if I don’t do it right the first time, I will deal with it and an unhappy tenant.
I looked at a flip many a few years ago when I was buying and there were so many bad bad things going on it was laughable.... crooked tile work, missing woodwork, humongous holes where the pipes came through, just so many OBVIOUS shortcuts and lack of skill everywhere.... My friend whom I brought with me because he was knowledgable about homes was just shaking his head at it all! I didn't look at anymore flipped homes after that, needless to say!
You are a truth teller not negative. I tell my buyers to NEVER buy a flipped home. It’s borderline fraud ( my opinion ). Residential Reator here. Greater Philadelphia
I used to watch a show out of Canada with a General Contractor named Mike Holmes. The owner found out that the house had been turned into a grow house for marijuana. At that time the Canada law said that the homeowner had to pay for the electricity that was used and not paid for. That grow house person also tapped into an extra power line to get more power for the extra electricity required for the growing process. Is that something that a flipper might or new owner of the house might have to worry about that. Also my parents had to get a home inspector for the house I live in now and when he said we needed a plastic cover over a light in a closet I thought that was not good. What else did he tell them they needed or did he leave out.
Nowadays, a flip is way too easy to spot. The "improvement" look like Home Depot. Also, think about the vintage of the house. Should an English cottage be converted into a Persian palace?
I live next to a home that sold for $28k after a flood; hadn't been renovated since 1950. Old windows, old roof, a/c was under water, leaking foundation...no yard to speak of...probably original electrical... Flipper bought it and put at most $40k into it using bargain basement contractors. All superficial stuff, floors, paint, drywall. Listed it for $110k... *Buyer paid $130k!!!* I couldn't believe it. This is all on Zillow....
House Nextdoor was abandoned for 2 years. Has a failed septic system and sat with a flooded basement for that long. They boarded up a window and painted over to pretend it’s part of the siding. Put in pretty but cheap fixes. Somehow got the basement dry. Painted everything. New vinyl floors. The people who bought it are assholes…..can’t wait for karma to bite them. Time is ticking…..they got the house they deserved.
they have a vicious dog. Never introduced themselves, the dog charged at me once and my husband twice in OUR yard. That was our introduction. Animal control was called twice and they were fined. Next offense they go to jail. They still have the dog off leash, so they are okay with it biting someone. We are having a fence put up because they are awful and we don’t want to be bitten.
But Jackie, typically a flipped house is rather inexpensive for the end-buyer - precisely because of asymmetrical information involved in it. If you get a house cheap enough, you can afford to fix a lot of issues. Just don't pay top dollar for it. I bought a flipped house for $40K, after the Great Recession. Eventually I had to deal with roof leaks, and paid to get them fixed. For a purchase price of $40K, I could afford to spend $1K per year to fix stuff. And yes, a lot of the inside doors don't close now. Big deal, I'll be selling in a year or so, and I'll just everything like that fixed.
I bought a HUD-repossessed, flipped home for $40k. It took $50k to get it up to code. And, that's doing 80% of the work myself. I love my house, but if I tried to flip it, I'd barely break even.
I hate the cheap grey flooring but if that's all they did? Mmmk. I can just rip that up later. Long as the rest of the house checked out. But I've seen a few really sloppy flips.
The southern half of Queens, NYC is full of flips. These people really think a fresh coat of paint and builder grade cabinets is going to get them a $300k markup when the outside still looks like it hasn't left the 70's.
The amount of flippers that remove the load bearing wall in a house is insane. Unless a metal beam is installed properly to carry the load, that house will fall down.
Agreed any time I see a home being sold that says newly renovated. I immediately lose interest a newly refurbished home. That is for sale after it's been refurbished. Change the day refurbished for the purpose of selling, which means they weren't interested in spending the extra money to fix any problems that were hiding behind the walls and electrical problems. Plumbing problems, foundation problems studying problems. Structure problems any problems that they found. They covered up for cheap to make the house look like it had been all fixed up. There aren't no problems. Please spend a ton of money in and find out in 2 years that there are a ton of Problems underneath All That new dry wall. New cab naturally new paint, new flooring new roofing. No, thank you, I do not want a newly refurbished home. I don't even want a new construction home much plus a newly refurbished home all have the same issues there may to look nice from what you can see, but what's buried underneath that paint and dry wall is just junk hidden junk.
Here in SW Florida, flipping is rampant. If I see a flipped house and they still have the outdated crank windows vs. newer impact/hurricane windows, that's a Huge Red Flag! It's $1200-1600 per window on average to replace, a great way for flippers to cut corners.
I bought a flipped home and over time discovered so many problems. On the other hand I've learned so many new skills fixing all this crap. My advice to potential buyers is to hire an electrician to do an inspection. Electrical can get expensive so fast and shoddy work can be life threatening.
I had the opportunity to learn from someone in the business for over a year. House flipping is largely cosmetic updates. Spray paint everything, temporary patch work. The work done is just ok if done as rental or something, the people living in a lot of these cheaper properties really don't care. I say that because I toured many places some while people were living in properties they were looking to sell. Termites, rats, bats, tics, feces/urine all throughout homes/upstairs/basement, etc. broken windows, animals getting inside during winter like cats. Faulty lighting/switches/outlets. Questionable appliance installations (ex: hvac ventilation/dryer ventilation blocked or vented in small spaces like chimney). People left behind mountains of trash. rats scattering in to floor air ducts. People actually live like this... Mountains of clothes piled all over the place like 3 feet tall. Cracked walls/ceilings, etc. one property they were asking just 10,000 for because of its condition. Jujk everywhere, dirty sink, dishes, moldy stuff in fridge. People are living like this daily. This is why rent prices are $1000+ for almost nothing in terms of what you're getting. It will take a few years to recoup just general repairs let alone a $15000 roof or $5000hvac. Higher rent costs generally keep people out that will trash a property. Meaning a millionaire paying 50,000 rent for a unit is unlikely to live as the people who trashed places I seen, not that they can't but 2 monthly payments or so would cover most damages vs a small property where someone charges $300 monthly rent & destroys a property. The person I learned from pulled permits as needed. Labor was as you'd expect low pay & revolving door of contractors. I didn't agree with the persons business expectations & didn't agree with contractors expectations for the work/pay because both cut corners. Example clean\scrap everything Contractor ok $500 Owner: but last time you did it for $350 Contractor:ok Owner:Attic/basement has stuff left behind, closet a mess. Paint ceiling & walls white Contractor: ok $1000 Property check, overspray on windows & door knobs, trim, etc. There would be discrepancies about a job when unexpected repairs would arise. The owner finding ways to cut pay & contractors not keeping to their schedule or doing job as expected.
I wish I started watching your videos 3 weeks ago. The house that I am in the middle of buying is a flipped home from an LLC. If the inspector was able to find 46 deficiencies, I wonder what else he would find beneath the surface. Any advice? Please help. I also subscribed to your channel on my personal account (this one is for my charity). Thanks in advance.
Jackie, Thank you for this video. As far as I'm concerned, there's nothing wrong with telling the truth as you're doing. The flippers and hustlers won't like it, but that's too bad. It's the truth and if they don't like it, then they should remodel a house and offer a warranty and replace the windows and show how they're better than an ordinary flipper. - Thomas
Thank you for the great information. Would you consider moving the camera back a bit? It’s harder to concentrate on long discussions, & distracting when the camera is so close to the speaker.
My late Uncle and (Aunt still living) lived in a house that was built in 1912. They raised 5 kids in that house. Anyway, the siding on the house has asbestos, so the house couldn't be sold traditionally. Some flipper bought the house for $120,000, and they plan to flip the house after the siding is removed. The whole house has to be "tented" in order to remove the asbestos siding. Sad. The interior of the house needs updating as well. I don't know what kind of siding the flipper intends to put on the house
Too late. I bought my current home in 2014 already and we do have water leakages in the bathrooms. I have repaired the tub’s faucet water leakage in the basement’s bathroom after I bought my home in 2014. Now I have to renovate the first floor bathroom due to the water leakage from the upstairs toilet and fix the leakage. At that time we can only afford an old home and we needed a house, and our current home already the most decent one that we’ve seen in all of the old homes in good areas already. We plan to rebuild a brand new home after paying off this home, we have 6-7 more years of mortgage. I will be 48 years old at that time and my husband will be 53 already. I would love to build either a Japanese or ancient Chinese style home, I don’t know if it’s possible in the US to find contractors who will do it.
Do not rely on the home inspection to provide any actual value or important information in the inspection report, they are useless. You must hire your own contractor to go through the proposed sale while its in escrow
I bought a (DIY) flipped house - BUT only after a through inspection (professional) and after it had been on the market for 7 months (and the sellers had dropped the house price $50k). I made an offer $15k under their current price AND my agent negotiated another $8k in concessions. I'm still there 6+ years later - and after living there 3 years did my own renovation with a licensed contractor. My home has more than doubled in value since I bought it. The flippers had done a mix of good structural work (replaced windows and roof) using professionals, and DIY superficial work (really bad wood floor install and kitchen backsplash); it was this poor superficial work that I think is why the house was on the market for so long. NEVER SAY NEVER except as part of this statement ;-) Just do your homework and find professionals you trust to check a home out (if you're seriously interested). Don't let the fact a home is a flip keep you from a home with that perfect floor plan, location, and yard.
i bought a flip the guy is a contractor builder he did an okay job, he still cut corners to save money the house needs some stuff done to it. the the main stuff is done.
I bought a flip. It has been a nightmare. NONE of the work meets code. All of the work was cosmetic. So far I've had to replace the entire septic system, the full HVAC system, all of the windows, dig a new well, and countless electrical repairs. Then there's the kitchen. Appliances started failing in the first year and the cabinetry is some of the absolute cheapest junk I've ever seen. This stuff makes IKEA look high end. The roof was "repaired", but doesn't meet code. No idea how that got past the inspector. For what our flipper couldn't have spent more than 50-60k on, I'm looking at 400-500k to have done right. Basically this house is a tear down.
Electrical contractor here flipped houses are usually an electrical nightmare!
Same with plumbing hidden in the walls.
@@SillyPutty3700 thank you!
@@johnnynick6179 he isn't implying anything. He just said what he said. You are the one reading 16 paragraphs and a Bible passage meaning into it.
@@SillyPutty3700 What can I do as a buyer?
Any old homes can be electrical nightmares. Uninformed just want pretty and dont realize the cost of upgrading wiring and panels and plumbing. Those pretty finishes will often have to be torn out to fix the old stuff behind the walls. If people were better informed these old houses wouldn't sell for nearly as much. It's more expensive to replace existing electrical and plumbing than it is on a new build that's why nobody does it unless it's a high property value area with no new construction.
"Flippers" are up there with MLM, car salespeople, preachers etc
Its a business just like any other jobs. Some are good at it and some are bad at it. You have the choice not to buy one if you dont like
@@ThangPham-xv9by let me guess, you're in the flipping business?
@@johnh8705 not at all haha I am not even in the real estate business but I respect others jobs and businesses
😂😆😂
Low IQ take. @@ThangPham-xv9by
Most flips are almost completely cosmetic. Seen a ton where I live.
All*. We live in a Kardashian age... Perfect on the surface but rotten underneath. This applies to food, furniture, clothing... Just everything nowadays
Retired licensed architect / builder / remodeler here. Jackie your comments are spot-on! I always got necessary engineering, take lots of process photos, provide architectural drawings, submit for building permit & construction inspections, hire licensed sub-contractors who pull their permits, etc.
It takes time and money to do the job right, but you can provide full documentation to buyers .....and sleep at night!
Look at the electrical panel and the roof. Flippers rarely touch those two things because of the cost, and because they require permits.
Flip near me still has a moss covered roof. Can't believe nothing was done. Unsure how they even got house insurance with such a rotten roof.
Yep. You are much better off to buy the fixer upper and do the upgrades yourself - with professionals who know what they are doing. And can be held accountable.
Some of these major construction companies act like flippers
Sadly, many flippers know how to conceal defects so that even an inspector cannot find: they only inspect what can be seen; they don't know the condition of walls if new drywall is installed over it.
Bingo
So do homeowners, how do you know it wasn't covered up already?
The incompetence of inspectors is awful. They just send bank employees. Ok the woman with the degree in commerce is going to ask the teenager left home to open the door questions about the roof. That’s the inspection. ( I was said teenager).
@@KimberFarmsbecause if it has been covered up badly earlier by homeowners it would have ruined their lives
This is 💯 true!!!!! We bout a flipped home and didn’t even live in the home for 6 months yet and already had to dig into our emergency fund to fix the home that they didn’t fix correctly about 50k already and still more to fix. Inspector missed ALOT of things which was bad for us and good for the flipper. Avoid at all cost!!
My inspector missed issues with the windows. Minor issues thank God but still felt like I wasted money paying him. Windows are one of the first things you look at.
@@johnnynick6179 They replaced the windows as part of the reno so they’re new ; but they did a mediocre job
@@johnnynick6179 as I said, the sellers installed new windows when they reno’d, they just weren’t installed well.
Same. I have to fix my chimney
@@Neiri-qg2wksame.
We bought a flipped house at a lake in the California foothills, 3 bedroom, basement, cottage on the property with 1.6 acres for $50k cash. My husband is a contractor, we KNEW there was some issues to be fixed, the carpet was cheap and even had a stain, old windows, they pulled down the old rotten deck and just made steps with a small platform to get in. We KNEW. Don’t care. We built beautiful decking, replaced all the windows, just renovated the kitchen to include all new cabinets, a laundry/pantry room, all new light fixtures. We bought it for the long haul, not the short term.
We rented it out for 4 years, what we made in rent literally paid us back our original $50k purchase price. It’s all free from now on!
Seems like warranties should be required by law. Especially if sold by flippers.
Quality home inspection before you buy!
In Ontario, Canada you only need a 4 hour course to get a licience. My daughter and her husband bought a flipped home with an inspector recommended by the military.
Furnace no good. Needed to be replaced. Major hole in basement wall hidden by a bookcase. Found first rain.
I can not even start to describe the plumbing under the kitchen sink. Never saw anything like it before. Major leaks. Parts did not even fit together.
And the home inspector was not liable for anything.
Learn to do your own inspection. Have a list and check everything yourself.
I did that for our retirement house.
I collected the water for the well inspection myself and had the water tested. Part of the condition for buying was the wood stove met codes. Necessary for insurance.
Yes, it needed some work, but we bought it knowing exactly what we needed to do over the years. No big surprises.
If you are buying in a development with an HOA, ask a board member to recommend an inspector.
@@shanagaskill3473If you are buying in an hoa get your head inspected.
Never buy in an hoa. Even a good one can turn ugly with 1 bad election. I have seen it.
Thank you for this video, and the other ones you create. The subject is not negative, it is reality. I am in the early stages of looking for an older home to be my retirement home. I have owned and inherited property in the past. Here are some other important things to look out for: 1. Large cracks in the foundation. 2. Hidden buried oil storage tanks on the property, 3. aluminum wiring, 4. uneven floors, 5. condition of the sewer line between the house and the city's hookup (the inspector will not check this) 6. Radon, 7. Previous insurance claims on the property, 8. Asbestos wraps on heating ducts or asbestos tiles. It is best to view houses in the rainy season to look for drainage problems on the property and leaks and water or moisture damage, not when it is nice and sunny out.
I recently bought a house. We were living out of town, but came in for a week to look at houses with our realtor. It was raining like crazy all week. One house we were viewing had just finished a basement remodel. The basement had new hardwood floors. We walked down to the basement and saw a huge puddle in the middle of the brand new floor. Thank goodness for the crazy rain that week! Needless to say, we quickly walked away from that house, after our agent had the fun of telling the listing agent about the flooded basement.
You can buy a brand new home and they are pure crap. Terrible construction. So I think you’re taking a risk with both the flipped house and a new house. kind of both sides of the same coin.
Do you think every non new house is flipped? That’s not how that works lol
Thank you being honest and informative. if someone is offended by this they are clearly not to be trusted
You're not wrong.
Small inattention to details are a huge red flag. If there's a cabinet door mounted the wrong way, no one took time to change which direction the new fridge opens, or a light switch located behind a door (especially going down steps) are all small things that were quickly overlooked and there's likely bigger issues they ignored as well. These are all things I've seen recently while looking at houses. I've seen bigger issues as well but it's the small things I usually notice first.
We flipped how the door opened on the guest room of our retirement home. We bought it from the first owners, so it was built that way in the 90s. We have the marks on the doorframe where the hinges use to be, painted, so not as obvious, but you can flip on the light without going around the door.
Some of the cheaply flipped homes I have seen online, you can see that they either didn't install trim around the cabinets or did an uneven job. Another quirk of many cheap flippers is the new stainless steel appliances still have plastic wrap on them.
I agree, but you know what other types of houses have problems?.... Owner occupied, that didn't do an update since the late 70's, but think their house is amazing because they're emotionally attached to it.
You mean because the house may still have asbestos and lead paint?
Yeah but you see the flaws and can hammer them on price.
Made the mistake of buying a flip this year. You don’t see how crappy the renovations are until you move in. The tub had a diy epoxy on it only designed to last a short time and it’s already peeling after six months. The exterior paint is cheap so the porch and patio paint has already worn off and looks terrible. They likely slapped it on before listing the house.
Cupped floors. Cheap LVP flooring. Seams showing everywhere. Shoddy window installation that the inspector did not catch. Just crap. And like I said a lot of it you won’t really notice until you move in, start placing furniture and spend more time in the house day after day.
The wild part is my old apartment in the hood had better renovations and appliances than my house. I understand why people just rent.
You gonna sell it
@@xro1983 I wouldn’t sell it. I’ll rent it. But I have to decide if I want to rent it out while I get a cheap rental somewhere else or just buy another house that I like more. I have to see how the market moves and where I am financially when housing prices drop. Also, I should mention I know I made it sound like it’s a total dump, but if you saw the house, you would think it was nice for the most part. Like I said it’s living in it everyday is where you see they cut corners with the renovations and some of the issues with the flooring.
I've found renting to be a nightmare--most landlords are shysters and rents are high.
@@Neiri-qg2wk any recourse?
@@vvolfbelorven7084 No, issues aren't severe enough for recourse. Mostly cosmetic issues.
Jackie -- your advice is so CORRECT!!! In our area of northeastern Massachusetts, there are so many flipped houses that were dated and run-down properties to begin with, getting snapped up by LLCs for cheaply-done "renovations" to look snazzy, but their flaws get concealed and do not get corrected. My hubby and I (he's an engineer skilled in Master carpentry and licensed electrician) cannot believe how many buyers out there who are so easily duped into paying $1M+ for otherwise basic 1940s through 80s spec houses. Of course, the LLCs get dissolved soon after, their cosmetic fakery does not last, and the problems in the hidden areas -- such as wiring, roofing, plumbing, water damage, etc -- get exposed.
I am a 14-year-experienced GC, I do all my renovation work in Manhattan NY. "Never buy flip"! Even the flip TV shows cut corners here and there...
Cut corner list:
1. Wrong size/type of electrical wires, the wrong type of electrical box, use of non-licensed electrician, wires are not properly grounded, works done without electrical permit and inspection
2. Wrong type of pipes, drain pipe pitch are not to the code, works done without plumbing permit and inspection
3. Support walls are removed and replaced with under-size headers and without support base/footer to the basement
4. Bathroom installed without or improper waterproofing
5. Least expensive tile mud setting materials are used, tile installation never lasts long
6. Least expensive plumbing fixtures are installed, need to deal with leaking issues regularly
7. Windows are installed without/improper insulation and waterproofing.
8. moldy/rotten wood/sheetrock is painted over to cover.
9. wood floor installed over the existing old floor
10. water was mixed in the compound to install joint tape, and the joint tape will peel in a few years
To fix all the issues above, you need to demolish the whole house and redo all the work again.
Don't buy a flipped house>>buy it BEFORE the flippers get to it and do it yourself.
If the price is right and if you have the funds budgeted for the work, and if it doesn't need to be move-in ready, then I completely agree. I think the problem is most buyers are only interested in turnkey properties that have been recently updated and move-in ready. They aren't interested in undertaking renovations themselves. If it needs more than just cosmetic work, like structural, electrical, plumbing, etc., you need to fully understand what you would be getting into.
@hotpuppy1 But I don't know to fix the damn thing!
I think HGTV gave everyone or every first time home buyer the idea that they should be walking in to a home that has rain shower heads. Look kids, that’s your second or maybe third home… you see it on tv and it truly gave people a false sense of the world of home ownership!
When I was trying to buy my house the problem was I kept getting out priced by the house flippers.. I didn't have the money to compete with them.
I bought a home built in 2002. Not horribly outdated, but had original builder-grade finishes everywhere. Found an amazing, former general contractor I hired to make upgrades and improvements each year since 2021. Paid for it with a slush fund I saved and replenished over time.
Takes money to be a homeowner, beyond the closing costs and PITI.
I’m happy I bought a well loved home. I’m a bit annoyed with some of the DIY, but they cared about all their upgrades.
You can have your flipped home in any color as long as it's rigor mortis gray, inside and out.
Glad you mentioned that flippers don't know about bad neighbors. One bad neighbor can make your life miserable.
On the other hand, a homeowner wanting to sell their house may not tell you about their neighbor from hell. What's the solution?
Maybe go around the neighborhood and knock on doors...
So true on every point. As a single female i was looking to buy my first house at 57. My realtor was "the goat" of the area I wanted to live. But one house she showed me that was a bit more than I wanted to pay was a friend of hers who was a developer. The back yard was jacked up with a lot of unmaintained koi fish ponds and lots of large rock and over grown grass. The fence was a mess. There were closet doors missing that just drives me crazy. And the screens in the windows were torn. Plus I worried about the skylight. The living room was nice. The bathroom was overly done with some crazy shower stuff that probably would impress folks looking at it but seemed like a repair nightmare to me. He bought this house super cheap and had been renting it for 2 years. Now wanted to sell it. I came to find out he had made no upgrades or repairs in 2 years. Come on, buy a closet door. Lol. My realtor told me he would be willing to remove all the rocks from the backyard and kept praising the newer pella windows. But he should have replaced the screens just as a small basic thing. I got the feeling there were going to be a lot more repairs other than fresh paint and flooring in the kitchen. It was a quick no, especially if I was going to be spending more of my cushion $ on the purchase. I ended up going with a smaller home that had been lived in for 20 years, they had upgraded some things but not others. I am more fine with this than the other scenario or where I see the flipped renovation with the low end kitchen counter, low end new flooring, etc. On those I looked at like that I knew I'd want to take the new stuff out, but wouldn't be able to for quite a while because I already would have paid more for them included in the higher purchase price plus wonder about the other structural things.
To say I agree is an understatement. My husband and I bought a flipped house 7 years ago. Let's see if I can remember everything that's gone wrong.... shower failed inspection because it wasn't waterproof (really!), so they rebuilt it. That one failed 3 years later. The electrical was unsafe and a fire hazard... that cost us about $2000. They never installed the porch overhang so we have an open permit (the house appraised low so they didn't finish it). My bathroom sink has never had hot water and the plumber we hired can't figure out why. They used furring strips instead of studs so there is little to no insulation. They replaced 2 windows; the rest are 45 years old and leak air. Tile work sucks- no mitering around the fireplace, grout on the backsplash tiles that didn't get cleaned off, grout missing where it meets the counter. Second bathroom has one light- a fan/light combo- for the entire room. AC is inadequate for the size of the house- we've spent about $5000 on that and it's still not fixed. I know there's other stuff, but I'm exhausted just listing all of this.
Did your plumber ever figure out why you didn't have hot water at your sink? Somebody may have hooked up the hot faucet to a cold water pipe.
@@richardshermanjr1899 nope!
Flippers usually cheaply 'upgrade' or repair homes to increas the home's value so they can turn a several thousand dollar profit.. Which will then cost you more to undo their damage.
If I flipped homes I would proudly video the before and how I corrected bad problems.
Wow 🫢 I will most likely never own a house because I am single and lower on the pay scale but can we just talk about how ADDICTIVE your videos are?!?! I'm hooked, and have learned a wealth of information that no one has ever divulged to me before. I love your channel, I'm subscribing even though I'll probably never be able to buy a house (your videos are THAT good)
I’m hooked too!!!❤❤❤
As a quality-oriented craftsman/GC, I gotta say; I agree with ALL this. People really need to do their due diligence and stop being wowed by the superficial. I'd say MOST flippers are, well, scum. People really do need to watch out.
We have a painted brick house in our neighbor that was bought by a flipper. The original color of the brick was a green color but had never been painted in 25 years. The paint had badly oxidized and was chartreuse! We watched the flipper put one coat of white paint on the house. We were flabbergasted.
And it costs thousands to have it blasted off of brick
Brick is beautiful and can't imagine why people paint it.
@@michaelb.8953 They used left over bricks. When they were building the house, none of the bricks matched at all! They did this purposely to save money knowing they were going to paint them. We have a lot of painted brick homes in my area. I love the white ones but upkeep would be expensive when time to paint again. And the white paint begins looking dirty (especially towards the ground) so I avoid them. But a white house with black gutters and window can be so beautiful!
Great points. Intentionally or unintentionally covering up issues is the worst and I guarantee they pull no permits.
As an electrical contractor, I have seen many “flipped” homes. As a consumer, they terrify me. Here’s why:
You can hide a lot under vinyl siding and nice drywall. While “profit” is not a bad thing, it takes time to fix things. “Flipping” involves selling the house much faster than you could if you actually fixed something.
There’s a reason for vinyl siding: That’s how you cover up damaged siding, or address lead paint issues. It’s safe to assume the vinyl was simply slapped over the existing mess, rather than removing the bad stuff. I suspect the same logic applies to the sudden popularity of metal roof coverings.
Ditto for drywall. All manner of problems disappear with a piece of drywall.
Actually a metal roof lasts much longer. Most come with 50 year warranties. Unfortunately if flipping you do not get the cost back. It is cheaper to fix damaged parts and put up cheap shingles.
My sister decided on 25 year shingles as she is 75 and has no plans of moving unless forced to. Half the price.
My daughter and her husband went with shingles as they hope to move in the next 5 years. Will not get the return on metal.
The people going with metal roofs plan to stay long term in their homes or pass them down to their children.
We have a metal roof and love it. It was one of the things on our wish list. It has been threw several hurricanes and nor easters and is still holding tight. The couple we bought the house from had planned to live here much longer when they added the metal roofs to the buildings.
Thanks for sharing!
Metal roofs have been normal in Australia and New Zealand since the 1850s.
@@viviennehayes2856 the U.S. is behind
Whoever edits your videos, they doing a good job keeping things hip. Good work
I don't know why I'm watching this knowing that I'll never be able to afford to buy a house, I guess I just like learning about houses just in general 😂
Flipper's don't buy well maintained houses to flip. They buy cheap, neglected houses that often no one else would buy. Check to see if there are photos from when the house was listed and then sold to the flipper.
True. One can't get a mortgage and most people don't have the cash. Should we just let them rot?
@KimberFarms This sounds like an either or fallacy. Letting them rot vs. flipping them are not the only options. You can also not buy them yourself, or the repairs and upgrades can be done properly. If you can't afford to do the repairs properly, it sounds like Jackie and others here in the comments, wish these house weren't just flipped, but fixed properly and after seeking the proper permits, because they are legally required. Of course it all takes money. But here in the video, Jackie is highlighting how people sort of cheat the buyer by covering up known issues that blow up in the buyer's face because it was not actually addressed, or the flippers focus on the house's appearance and not its bones and organs, so to speak, when they are actually compromised, again, distracting the buyer with a pretty facade and not a good value.
As a lender myself, I have only seen a couple of your videos but I can say confidently that you are among the best of the business. Transparency has gotten mirky in our industry and most agents fail to truly understand all of the complexities of the industry from zoning to building to lending and beyond. Keep up the good work!
Thank you so much!!!
Our old neighbors got foreclosed on and flippers came through. The new neighbors undid most of the renovations inside. They said they knew going in that they didn’t like most of what they saw, but just wanted the house and knew some guys/had the money to get the house how they actually wanted it. In the process they found that some old trash among other things was left in the walls. Things like old report cards, receipts, etc. Just hidden behind walls
As we are only about 1/2 hour from the Chicago suburbs where houses are easily 2-4 times more in cost than they are here, people will quickly renovate a junk home in a bad neighborhood and market it around Chicago. If research is not done, the poor buyer gets stuck with a lousy house and a bad area, too.
You're so right! Years ago when I was looking at homes in Miami, these flippers would buy up old houses, put on a red door, paint over termites, new floor, cabinets, new appliances and they expected to make a $200k profit! Everything else was crap!
Jackie, I have a CPA firm that specializes in real estate. This was an excellent video. One thing to add, In terms of advice to people who are thinking of buying a flipped home, is to make sure you get references of the past five families that bought flipped homes from the same LLC or contractor. You'll be surprised how many unscrupulous contractors will not give you the names of other people they sell flipped homes too. But this is a very important step to get an idea of how reputable a contractor flipping might be.
Great tip!! Thanks so much!
Tips to identify a flipped house. They are showcases for homedepot cheap moldings and doors. Look at the new cabinets they dont usually waste money on fill strips so cabinets are too close in corners and doors can't swing fully or a can't have a handle. Check that they doors don't ghost open. Alsoccheck the threashold the tile guys usually take shortcut.
As a realestate investor. When I flip I focus on replacing important things befor I even consider granite countertops. The problem is not the investors its that buyers care more about "pretty" than functional.
Some people we know recently bought a flpped house. The broker that we listed our home with, said he had been in this house. The floors were very spongy--with a bad foundation./ The flippers did something to shore it up until it was sold. It had the requisite re-done kitchen and bathroom. I wonder how long it will be until the problems come out
I bought half a duplex that was flipped, shamelessly. Pretty much everything you said applied. Of course, this was December 2021, I was 1 week away from eviction and inventory in my area was virtually ZERO. I had no choice. Am paying it off in 2 years via investments cause there's no way I'm paying double the interest for this dogshit.
I build multimillion dollar houses and flip houses as a fun side hobby. Exact same high end skilled contractors. I would be happy to live in any house I flipped. We install new plumbing, heating and electrical as well as cabinetry, flooring, trim, tile ect.
@@sheneedsme I personally wouldn’t buy a flipped house. I would rather buy a fixer upper and have it fixed to my liking. That way, I know exactly what is done to the house and dont have any risks from buying a flipped house. But I can see some people who just want a turnkey property.
Sure, you’d make sure yout flipped house (fixer upper really) has the quality to your liking. But if it’s a flipper (to sell) I doubt you’d put the same effort
Your one of the good ones. In my area, large city, SC, these llc and other flippers are scarfing up mill hill houses that have sat for over 50 yrs, half ass renovations, slapping a $500,000 to 1 mil tag and calling it "new"😮 and the majority of these are in the ghetto, just saying 😊
Me too doing my 1st flip. Total gut job alll new services etc. If you're at all aware you can spot cheap shoddy vs quality work.
What if you flip it yourself? (A contractor) We have so many half assed corners cut in our purchased non flipped home.
I'm house shopping.
Thank you for teaching me so much.
Excellent video! Like you said - the majority of flippers cut corners to get maximum profit. A buyer may inherit a TON of problems, and the inspector can only judge by what they see.
Yup! Thanks for watching!
Last 4 flip homes I looked at had 15-20 year old furnaces. I have 8 rentals. I flip to rent knowing if I don’t do it right the first time, I will deal with it and an unhappy tenant.
I looked at a flip many a few years ago when I was buying and there were so many bad bad things going on it was laughable.... crooked tile work, missing woodwork, humongous holes where the pipes came through, just so many OBVIOUS shortcuts and lack of skill everywhere.... My friend whom I brought with me because he was knowledgable about homes was just shaking his head at it all! I didn't look at anymore flipped homes after that, needless to say!
You are a truth teller not negative. I tell my buyers to NEVER buy a flipped home. It’s borderline fraud ( my opinion ). Residential Reator here. Greater Philadelphia
Thank you!
I used to watch a show out of Canada with a General Contractor named Mike Holmes. The owner found out that the house had been turned into a grow house for marijuana. At that time the Canada law said that the homeowner had to pay for the electricity that was used and not paid for. That grow house person also tapped into an extra power line to get more power for the extra electricity required for the growing process. Is that something that a flipper might or new owner of the house might have to worry about that. Also my parents had to get a home inspector for the house I live in now and when he said we needed a plastic cover over a light in a closet I thought that was not good. What else did he tell them they needed or did he leave out.
Nowadays, a flip is way too easy to spot. The "improvement" look like Home Depot.
Also, think about the vintage of the house. Should an English cottage be converted into a Persian palace?
Great vid, very true, every flip has old windows. Such a bad business model that has ruined Housing.
I live next to a home that sold for $28k after a flood; hadn't been renovated since 1950. Old windows, old roof, a/c was under water, leaking foundation...no yard to speak of...probably original electrical...
Flipper bought it and put at most $40k into it using bargain basement contractors. All superficial stuff, floors, paint, drywall. Listed it for $110k...
*Buyer paid $130k!!!* I couldn't believe it. This is all on Zillow....
where do you live where homes only cost 130k
@@y.peffle2802 Yeah exactly its 425 in my area for the lowest of the low.
@@y.peffle2802 lies..
House Nextdoor was abandoned for 2 years. Has a failed septic system and sat with a flooded basement for that long. They boarded up a window and painted over to pretend it’s part of the siding. Put in pretty but cheap fixes. Somehow got the basement dry. Painted everything. New vinyl floors. The people who bought it are assholes…..can’t wait for karma to bite them. Time is ticking…..they got the house they deserved.
😂 😂 Savage…what happened that they are already bad neighbors??
they have a vicious dog. Never introduced themselves, the dog charged at me once and my husband twice in OUR yard. That was our introduction. Animal control was called twice and they were fined. Next offense they go to jail. They still have the dog off leash, so they are okay with it biting someone. We are having a fence put up because they are awful and we don’t want to be bitten.
But Jackie, typically a flipped house is rather inexpensive for the end-buyer - precisely because of asymmetrical information involved in it. If you get a house cheap enough, you can afford to fix a lot of issues. Just don't pay top dollar for it.
I bought a flipped house for $40K, after the Great Recession. Eventually I had to deal with roof leaks, and paid to get them fixed. For a purchase price of $40K, I could afford to spend $1K per year to fix stuff. And yes, a lot of the inside doors don't close now. Big deal, I'll be selling in a year or so, and I'll just everything like that fixed.
Most homes I've seen for sale here in Maryland are flips. So you don't really have much of options.
Im in MD too. The asking prices are stupid. Might be cheaper to simply get a contractor
@@vvolfbelorven7084 not any better out west just outside of Portland and our housing prices are through the roof.
I bought a HUD-repossessed, flipped home for $40k. It took $50k to get it up to code. And, that's doing 80% of the work myself.
I love my house, but if I tried to flip it, I'd barely break even.
Buy the house and renovate by yourself.
I hate the cheap grey flooring but if that's all they did? Mmmk. I can just rip that up later. Long as the rest of the house checked out. But I've seen a few really sloppy flips.
I want to say Thank you for your videos.
As a contractor we have had to fix some major issues with flipped houses.
The southern half of Queens, NYC is full of flips. These people really think a fresh coat of paint and builder grade cabinets is going to get them a $300k markup when the outside still looks like it hasn't left the 70's.
The amount of flippers that remove the load bearing wall in a house is insane.
Unless a metal beam is installed properly to carry the load, that house will fall down.
Agreed any time I see a home being sold that says newly renovated. I immediately lose interest a newly refurbished home. That is for sale after it's been refurbished. Change the day refurbished for the purpose of selling, which means they weren't interested in spending the extra money to fix any problems that were hiding behind the walls and electrical problems. Plumbing problems, foundation problems studying problems.
Structure problems any problems that they found. They covered up for cheap to make the house look like it had been all fixed up. There aren't no problems. Please spend a ton of money in and find out in 2 years that there are a ton of Problems underneath All That new dry wall. New cab naturally new paint, new flooring new roofing. No, thank you, I do not want a newly refurbished home. I don't even want a new construction home much plus a newly refurbished home all have the same issues there may to look nice from what you can see, but what's buried underneath that paint and dry wall is just junk hidden junk.
Here in SW Florida, flipping is rampant. If I see a flipped house and they still have the outdated crank windows vs. newer impact/hurricane windows, that's a Huge Red Flag! It's $1200-1600 per window on average to replace, a great way for flippers to cut corners.
Wow
Thank you so much for sharing your wisdom on this.
You are so welcome
I bought a flipped home and over time discovered so many problems. On the other hand I've learned so many new skills fixing all this crap. My advice to potential buyers is to hire an electrician to do an inspection. Electrical can get expensive so fast and shoddy work can be life threatening.
This was rare decades ago. We had a better job market, better quality homes, weren’t so materialistic and different financial system.
You are awesome! Thanks for all the hints!
You are so welcome!
Never, ever, ever buy a home without a bad ass home inspector!!! Especially from a flipper! Don’t buy the lipstick!
Let me add that of course choose an inspector wisely; along with other commenters, I've had mediocre inspectors who missed important, costly issues.
Love the clip from the Money Pit!
I had the opportunity to learn from someone in the business for over a year. House flipping is largely cosmetic updates. Spray paint everything, temporary patch work. The work done is just ok if done as rental or something, the people living in a lot of these cheaper properties really don't care. I say that because I toured many places some while people were living in properties they were looking to sell.
Termites, rats, bats, tics, feces/urine all throughout homes/upstairs/basement, etc. broken windows, animals getting inside during winter like cats. Faulty lighting/switches/outlets. Questionable appliance installations (ex: hvac ventilation/dryer ventilation blocked or vented in small spaces like chimney). People left behind mountains of trash. rats scattering in to floor air ducts. People actually live like this... Mountains of clothes piled all over the place like 3 feet tall. Cracked walls/ceilings, etc. one property they were asking just 10,000 for because of its condition. Jujk everywhere, dirty sink, dishes, moldy stuff in fridge. People are living like this daily.
This is why rent prices are $1000+ for almost nothing in terms of what you're getting. It will take a few years to recoup just general repairs let alone a $15000 roof or $5000hvac. Higher rent costs generally keep people out that will trash a property. Meaning a millionaire paying 50,000 rent for a unit is unlikely to live as the people who trashed places I seen, not that they can't but 2 monthly payments or so would cover most damages vs a small property where someone charges $300 monthly rent & destroys a property.
The person I learned from pulled permits as needed. Labor was as you'd expect low pay & revolving door of contractors. I didn't agree with the persons business expectations & didn't agree with contractors expectations for the work/pay because both cut corners.
Example clean\scrap everything
Contractor ok $500
Owner: but last time you did it for $350
Contractor:ok
Owner:Attic/basement has stuff left behind, closet a mess.
Paint ceiling & walls white
Contractor: ok $1000
Property check, overspray on windows & door knobs, trim, etc.
There would be discrepancies about a job when unexpected repairs would arise. The owner finding ways to cut pay & contractors not keeping to their schedule or doing job as expected.
I wish I started watching your videos 3 weeks ago. The house that I am in the middle of buying is a flipped home from an LLC. If the inspector was able to find 46 deficiencies, I wonder what else he would find beneath the surface. Any advice? Please help. I also subscribed to your channel on my personal account (this one is for my charity). Thanks in advance.
Paint n Carpet is what flippers call Renovation
How do you know if a house has been flipped ?
I created a 'flipping' business with the express advantage that we did excellent work. That was our niche.
So, you think that flippers should replace working stuff?
Jackie,
Thank you for this video. As far as I'm concerned, there's nothing wrong with telling the truth as you're doing. The flippers and hustlers won't like it, but that's too bad. It's the truth and if they don't like it, then they should remodel a house and offer a warranty and replace the windows and show how they're better than an ordinary flipper. - Thomas
How would I know if a house had been flipped?
Thank you for the great information. Would you consider moving the camera back a bit? It’s harder to concentrate on long discussions, & distracting when the camera is so close to the speaker.
New subscriber! I love your channel 💖
My late Uncle and (Aunt still living) lived in a house that was built in 1912. They raised 5 kids in that house. Anyway, the siding on the house has asbestos, so the house couldn't be sold traditionally. Some flipper bought the house for $120,000, and they plan to flip the house after the siding is removed. The whole house has to be "tented" in order to remove the asbestos siding. Sad. The interior of the house needs updating as well. I don't know what kind of siding the flipper intends to put on the house
Too late. I bought my current home in 2014 already and we do have water leakages in the bathrooms. I have repaired the tub’s faucet water leakage in the basement’s bathroom after I bought my home in 2014. Now I have to renovate the first floor bathroom due to the water leakage from the upstairs toilet and fix the leakage. At that time we can only afford an old home and we needed a house, and our current home already the most decent one that we’ve seen in all of the old homes in good areas already. We plan to rebuild a brand new home after paying off this home, we have 6-7 more years of mortgage. I will be 48 years old at that time and my husband will be 53 already. I would love to build either a Japanese or ancient Chinese style home, I don’t know if it’s possible in the US to find contractors who will do it.
Jackie, Thank you. Thank you, Thank you.
You're so welcome!
We might be the exception to the rule, bought a flipped house, and I don't have any regrets.
Do not rely on the home inspection to provide any actual value or important information in the inspection report, they are useless. You must hire your own contractor to go through the proposed sale while its in escrow
Yeah my husband and I bought a flipped house. We’ll never do that again. We’ve learned our lesson.
I also enjoyed the video about never buying a new construction home. If anyone needs me, I'll be in my tent.
Mine was totally done incorrectly. Got lucky to buy another
I bought a (DIY) flipped house - BUT only after a through inspection (professional) and after it had been on the market for 7 months (and the sellers had dropped the house price $50k). I made an offer $15k under their current price AND my agent negotiated another $8k in concessions. I'm still there 6+ years later - and after living there 3 years did my own renovation with a licensed contractor. My home has more than doubled in value since I bought it.
The flippers had done a mix of good structural work (replaced windows and roof) using professionals, and DIY superficial work (really bad wood floor install and kitchen backsplash); it was this poor superficial work that I think is why the house was on the market for so long.
NEVER SAY NEVER except as part of this statement ;-) Just do your homework and find professionals you trust to check a home out (if you're seriously interested). Don't let the fact a home is a flip keep you from a home with that perfect floor plan, location, and yard.
also, try to find the previous owners the flipper bought the house from and ask them questions about the house
i bought a flip the guy is a contractor builder he did an okay job, he still cut corners to save money the house needs some stuff done to it. the the main stuff is done.
There are good flips out there (I'm lucky that I got one) but you really have to do your due diligence.
I bought a flip. It has been a nightmare. NONE of the work meets code. All of the work was cosmetic. So far I've had to replace the entire septic system, the full HVAC system, all of the windows, dig a new well, and countless electrical repairs. Then there's the kitchen. Appliances started failing in the first year and the cabinetry is some of the absolute cheapest junk I've ever seen. This stuff makes IKEA look high end. The roof was "repaired", but doesn't meet code. No idea how that got past the inspector. For what our flipper couldn't have spent more than 50-60k on, I'm looking at 400-500k to have done right. Basically this house is a tear down.
So.
•Dont buy new construction
•Dont buy a flipped house.
Next video
•Dont buy ish
This video has shown me that I'm doing a professional renovation.
How about buying from a builder ?
You're better off buying from a builder. Just make sure they're reputable.