These days, a large portion of single-family homes are being flipped, that is, the homes are bought, renovated, and resold quickly. In recent years, it has become harder for flippers to finance these investment properties, and properties are often bought with cash or hard money loans. However, many markets are in need of housing inventory and so those that can amass the funds to flip a property can make money in the process.
Prospective homebuyers should always have an eye out unprofessional looking renovation work and defect cover-ups. However, when the entire property has been flipped, it may be harder to tell where the investor cut corners while prepping the home for sale. “A lot of these guys who buy these homes to remodel and flip them do a good job,” said Bill Jacques, president of the American Society of Home Inspectors. But, “there’s always going to be the person to put lipstick on a pig and sell it. They try to honey up these houses and paint them, put some new light fixtures in and make people think they’re in new and good shape.”