Finding houses that have potential to be a good flip requires a combination of things. Anytime there is the ability to add new living, space you have the opportunity to add value. That is exactly what happened with the latest house that was just completed. Even better was that I had professional photographs taken of the house before any demo or renovation was started so that we could do a true side by side comparison once the house was finished.
This house had two areas that had been left unfinished when it was originally built in 1938, which meant we could add nearly 1400 additional square feet of livable space to this home. From a value perspective, that is amazing because the size of the house was only 1071 square feet originally. Typical houses in this highly desired neighborhood are only around 1500 square feet.
So when you find an unfinished attic space you need to first make sure that the height of the ceiling when finished will meet building standards for height. Once that was confirmed we could do a quick layout of how the space would become a master suite…complete with a sitting area, bedroom, bathroom and 12 feet of closets.
For the lower level of the house, again, we found a treasure. This basement had been empty since the house was built. Anytime we are already in a home making renovations it makes sense to include a full lower level finishing as well. Most home buyers today are not looking to move into a home and then have to tackle renvations and construction. When I layout the space in these lower levels I am looking to add: 1. A bedroom, 2. A bathroom, 3. A family room and 4. A laundry room. One of the tips I like to use when planning is to put the bathroom next to the bedroom. That makes it useful as a guest suite or a junior suite if you have an older kiddo.
House flipping tips for finding space to add value:
- Look in the listing comments for words like “potential” or “equity builder”. I also look through all the photos to see if there are any pictures of unfinished space. You would be surprised how many times there will be photos but they are buried so if you don’t click through you may miss the opportunity.
- Always bring a tape measure so you can check ceiling height.
- Know the proper height that is required by building code to make sure the space will be considered livable.
So the addition of these two spaces alone more than doubled the size of the house and its value. Knowing that this neighborhood appeals to buyers who may be looking for more space than many of the homes offer, and that there are several new construction projects that are larger going in as well, made this home a picture perfect property for a renovation.
Want to buy a property and renovate it?
Looking to buy a house to renovate? Check out the fixer upper checklist to help you find the perfect house.
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