You understand the importance of an inspection before buying a home for your family in order to protect your interests and assure your comfort. An inspection is equally important when buying an investment house in order to identify any unexpected problems which may destroy your budget. When flipping a house, you expect to put some work into it, but you need to know exactly what you're getting into beforehand. Unexpected problems multiply in cost exponentially beyond the additional repair costs. Additional holding time and losing potential buyers when their inspector finds a problem you never addressed can potentially be more destructive of your business plan than simply turning down what seems like a great deal on the surface because your inspector points out problems you didn't notice.
The Difference between Appraisal and Inspection
An appraisal is important as it gives you an idea of what the house is worth in its current state. Along with research into the value of similar homes in the area and a knowledge of repair costs, you can set a budget for time and expense to determine if the house will provide the profit you expect based on the appraisal. A thorough professional inspection actually gives you an idea of what repairs are going to be needed.
Assuring Your Interests with an Initial Inspection
Without the inspection, you can and will find hidden damage which was unexpected and will destroy any budget plans you formulated. You may plan to add electric outlets, for example, and find mold inside the wall. At this point, a very simple upgrade became a major renovation. You may not realize there is a leak in the foundation or roof with a quick look, especially if it hasn't rained recently at the time of purchase, which again is going to destroy any profit you originally intended to earn. If the structural integrity is compromised in a way which wasn't noticeable, you may wind up with the devastating effect of the house being condemned.
Protecting Your Investment with Ongoing Inspections
Ongoing inspections continue to protect your investment by assuring problems which arise are dealt with immediately rather than leading to more damage and more expensive repairs. With an older house such as what is typically being renovated for a house flip, new problems can come up at any time. The initial inspection assured the house is in decent shape, but sometimes the actual process of working on it can cause damage. Again, ongoing inspections assure you find it rather than the embarrassment of a potential customer discovering a problem.