House Flipping // Rehabbing Challenges

[Cameron Fowler]

When looking into getting my first flip or rehab house there are all kinds of work that I am curious of and other people's experience. I would love to hear some stories or areas that were challenges for those who rehab or flip houses. I am in Indianapolis and there is a lot of great opportunities for flips but I want to know what challenges to be on the look out for. 

[Evan Polaski]

@Cameron Fowler, as Alan notes, where to begin.

Contractors not doing a good job.  Or as my wife likes to call it: "man-sitting"

Contractors unwilling to execute on what you hired them for (I.e. current flip, cabinet installers were supposed to put up fill and crown.  Design called for this to be installed on same plane as the doors. Admittedly, this is not standard, and when installers arrived they said they can't and won't do it)

Supplies not arriving on time and impacting scheduling.  

Arranging schedule of various trades and balancing the good ones with the ones that are available.

Permitting and inspection issues (should be a non-issue, but last house we had a new inspector that seemed like he had something to prove and nitpicked what I view as non-issues).

Market swings impacting ARVs, or in the current market: are we going into a recession before the house can be completed?

Overall condition, as noted.  When you start opening walls, a lot of issues that, based on the visible condition of the house, were assumed to not be present, are.

Bids coming in over budget