A normal roof in non-extreme climate conditions will typically last on a home between 10-15 years. The seller is required to list the age of the roof on the inspection sheet so you will be able to determine the age there. Don’t try to get on the roof yourself to inspect. Instead use binoculars to look for any damage before you call in the professionals.

Five Most Common Problems

Flashing boot needing replaced

Flashing/boots–The material used around vents and pipes is a prime spot for leaks and water damage.

Gutters–A build up in your gutter of debris and water can cause molding and rotting.

Shingles–Discoloration, curl ups, or missing shingles leave the base board susceptible to rotting, holes and other damage.

Fascia–Look for moisture on the front board as an indication of water damage here.

Soffit—Small animals and insects can reach the wood under the roof’s overhang. Check for cracks, holes and rotting.

Tear Off vs. Overlay

On an overlay the new shingles are applied over the existing layer of shingles. Some states will not allow an over lay there are 2 roofs or more so check your local restrictions on building codes to find out.  If you only have one layer, the existing roof is in good condition, lays flat (no bumps or rolls) and has no leaks or any problems with the underlying roof deck (soft spots), then an overlay may be the best option for you.

Roof with shingles curling up

While overlays save on time, labor and disposal costs, they can only be done if certain conditions are met. A tear-off where all the old shingles are removed from the roof, it is inspected, and then a new roof is put on, is a better option on several scenarios.

• The  condition of the existing shingles is so rough and distorted that it would not be practical to flatten all raised areas enough for the new roof to lay flat.
• The roof structure shows signs of sag across the ridge or truss lines. If the roof does not look straight and feel solid, there may be structural defects.
• Spongy areas are noticed when walking on a roof, or an inspection of the deck reveals rotted/warped wood or large gaps between the deck boards. Any rotten or damaged boards must be replaced before applying the new shingles. These conditions are not always evident until the roofing is removed.

You may be wondering what kind of roof to use if you have to replace. You obviously want to match the roof to the existing structure, using neutral tones as well. Normally you will go with a traditional shingles as apposed to ornamental like clay or bronze. However, depending on what area of the United States you live in, clay might be commonplace. The main thing to remember is not to over improve. Make sure that the roof is in the same price range as others in the neighborhood and you shouldn’t have any problems getting your money back out of the upgrade.

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Epic House Flip Fail?

It happens to the best of us. Mistakes are made, time and money are lost. A bad flip. But don’t feel too bad; even pop star Ricky Martin had a failed flip in 2010. Guess he wasn’t Livin’ La Vida Loca that year. But how can you as a part time real estate investor stay out of the pitfalls? Let’s talk a little bit about why flippers fail.

Here are our top five reasons why we feel new house flippers fail.

1. Paying too Much

We know that you are excited when you get that first deal. Keep in mind that first flip can set the tone for your flipping career. While the first flip is a learning experience, you must do your research to make sure you know what you are getting into. Check out the neighborhood yourself or have your realtor work up comps for you. Over paying for a property will not leave you in a good situation. Don’t let a loss for a brand new investment business could be too hard to overcome.

2. Lack of Planning

We say this in about every blog: Have a system and stick to it. Jumping ahead in the flipping world with out laying out your strategy is not only dangerous it could ruin your flipping adventure. Having a system and using tools like your Property Repair Estimate Sheet will keep you organized and have an idea how the flip is going to turn out. Without a system, a flip could turn into a disaster.

3. Not Supervising Contractors

While we encourage part time flippers to hire contractors to keep the bulk of the work off your own shoulders, don’t forget to supervise. Often, first time flippers think that all they will have to do is hire contractors and then they can go back to their day job and not check in. So much can go wrong if you do not check in on how the contractors are doing with your Scope of Work (SOW). Let the foreman know if he is to make decisions on the spot, or should a contractor contact you first. Keep in mind that not all contractors have the same morals and values as Tim the Toolman Taylor. With out supervision, they could drag their feet getting the work done, take 3-hour lunch breaks or actually be doing another job while they are supposed to be doing yours.

4. Unrealistic Timeframes

This mistake can be avoidable if you educate yourself on how long it actually takes to complete a flip. How busy are you? How busy is your contractor. What is the market like in your farm area? A good rule of thumb to follow from Bigger Pockets: Give yourself six months; plan all your carrying costs and expenses for 6 months, then work towards getting it gone in three to four months depending on the extent of work needed.

5. Over Improving

Don’t make this mistake. Don’t rehab the home the way you would like for it to be. Don’t pick out designer tiles or trendy paint colors. Remember you are trying to appeal to potential home buyers, not your personal taste. Yes the marble counter tops will really look nice but an upgrade like that could price yourself right out of the neighborhood. Neutral options that are comparable to other homes in the area will best serve you to sell the house.

Read more about this at Bigger Pockets, a social network for the real estate investing community.

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Be careful not to over improve!

Does your agent suggest you add some extra touches? Once the restoration part of the flip is done, do some things seem too outdated or dirty? Does the new flooring and the new coat of paint now make some things about the house not acceptable? Do not get into this mind set.

Because if you do, or you let your realtor talk you into the granite kitchen countertops, or upgrading lighting throughout and replacing the front door, this could add another $5,000 to the already exceeded budget. Then you will have to find someone to do the work and you have added another few weeks onto your investment being on the market and ready to sell. Stick to your original Property Repair Estimate Sheet from your original walk through. It is one of the more important documents you need to ensure you do not over improve and have your flipped house looking like Liberace’s. This document should include a list of all of the major items (roof, HVACs, kitchen, paint, flooring…) as well as cost estimates for each item. You should complete one of these during your initial visit of every house you look at to attain your After Repair Value (ARV).

This might be a little much for your flipping farm area…

Those granite countertops sure do make your property pop though. But it’s not necessary to install granite countertops, oil-rubbed bronze fixtures and travertine showers in an $80,000 property. Few homebuyers will see the value in these kinds of upgrades and an appraiser probably won’t either. So in reality you will not get your money back on those types of upgrades.

As a matter of fact BiggerPockets.com has two main tips for making sure not to over improve a property.

1. View other comparable properties in the neighborhood (preferably other flips or normal sales) and take note of their improvements and finishes. Use similar ones for your deal.
2. View new home models and take note of their designs, paint schemes and finishes. Homebuilders pay professional designers big bucks to decorate their houses so copy what they do for your properties.

In conclusion, keep the emotions out of the flip. Just because it is a feature that you or your significant other would love to have in your own house doesn’t make it a necessity in your investment. Remember just that; this is an investment, doubly so especially if you are flipping houses on a part-time basis. This way you will save your self the head ache and heart ache of over improving and keeping your investment your source for a profitable future.

Source: http://www.biggerpockets.com/renewsblog/2012/10/04/over-improving-house-flip-profits/

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