As a flipper, wholesaler or rental investor, when you get your first chance to walk-through a property before you make an offer or a bid, you may only have a few minutes to make a quick review – so what are you looking for?

Remember that in addition to realtors and homebuyers, a fix & flip project will eventually have two other sets of eyes to satisfy: the appraiser and the home inspector. What things have to pass their judgment to sell for the best possible price in this market range?

Take a clipboard with your areas of inspection printed, so you can quickly circle and checkmark the things you want to note as “good”, “ok” or “bad” as you go. A cell phone camera is invaluable for the problem areas.

Are there important defects? How much in the way of minor corrections are needed? If the house is even a few years old, pay careful attention to how much updating is needed to bring it to top-of-market. If it’s a newer property that makes a good first impression, remember that somewhere is the reason why this one came up on your list of below-market fixer-upper opportunities.

You don’t have to make a final repair-or-replace decision now. You’ll do that after the professional inspection once you have a signed purchase contract. But when you work up a purchase price, you can budget your rehab to replace everything you mark as “bad” – and hope you won’t actually have to.

• Outside items to review are the front and back yards, exterior paint and finish work, and the appearance of the roof. Does it have a garage – is it attached – is there a garage-door opener?

• If you can, get the type, age and condition of the major systems: air-conditioning, heat and hot water. Check the visible components of the electrical and plumbing systems, remembering that appraisers and home inspectors look at those closely. What appliances are included, and what is their type, age and condition?

• Walls, floors and ceilings are, of course, the basics. Don’t forget the trim, lights, molding and finish-work throughout the house. Also take a close look at the windows and window coverings. See what’s working if there is a fireplace – damper and ash clean-up.

• Make a note of the “big picture” items  – does the property back up or side to a major street? Is anything notable unusual about the lot –is it a corner lot? Is this a great neighborhood, a good one, or would most people think of it as ‘bad’?

As you identify the areas needing work, remember that you are not buying this property for yourself, but to prepare it for sale in this market. Know your buyers, know your market, and focus your attention accordingly. Once you identify the cost points you can target a purchase price that will allow a top-of-market rehab – ensure a successful and profitable project!

If you are new to real estate investing, how prepared do you feel to do a property walk-through?

Want to earn money with little or no investment of your own? Keep an eye out for my upcoming ebook explaining wholesaling and how to make it work for you!