Tow quick questions for flippers

[Steve Edwards]

1. Do gutted homes offer good profit potential (in general)? I know it depends on the numbers, but I'm not sure how expensive it is to rebuild an inside., so generally speaking is it worth looking into?

2. When going through rehab properties, what should I ask when considering the property? For example, I know that I should always find out: 

*if there is mold 

*how old the roof is

*if there are liens or back taxes owed

What else should I specifically look for that could trip me up if I overlook it? This will be my first flip. 

Thanks a ton!

[Clay Smith]

1) If I was a pin up in Playboy my poster would read, Turn Offs: gutted houses.

They just require more materials without adding resale value. They also require permits and can take longer to complete. Of course, my Turn Ons: Profit. This makes it worthwhile.

2) stay away from floodplains, attorneys/closing agents should find tax liens and you should buy title insurance. Look for cracks in exterior brick, unlevel floors, unlevel window frames...all signs of foundation issues.

Take note of the roof, are there black streaks or raised/missing shingles? Note the age of water heater, ac, hvac, and look for maxed out electric panels.