1. Neighborhood

• Pride of Ownership: Are the neighboring properties well-maintained, with neat lawns and clean exteriors?

• Blight or Neglect: Are there vacant houses or overgrown grass on the street? Is there visible garbage or litter? Do neighbors have multiple cars parked in front of their homes and junk piled up?

• Noise and Behavior: Are there any loud noises from neighbors (music, arguments)? Are there aggressive dogs tied up and barking in yards?

2. Exterior

• Driveway Access: Is the driveway easy to access, or is it too steep? A very steep driveway could be a deal-breaker for me.

• Landscaping: Does the property require landscaping, such as trimming overgrown bushes?

• Roof Condition: How does the roof look? Does it need replacing, are tree branches hanging over it that need trimming away?

• Siding: Is the siding damaged or peeling? Will it need repainting or repairs?

• Windows: Are any windows damaged or broken?

• HVAC & Electrical: Is the HVAC system intact? Is the electrical box in good condition with a cover plate? A missing cover plate would require permits to have the power company install a new one. This could cost around $3,500 for me.

• Back Deck: Does the back deck need repairs or demolition and replacing?

• Foundation: Are there any long vertical cracks or laddering cracks in the foundation? Is there any water penetration or discoloration at the base of the house?

• Pool: Depending on the area of the country, this could be a positive or not. Here in my market, we have filled in plenty of pools. Why? High maintenance costs and the cost of additional insurance and liability with tenants.

• Water Drainage: How is the rainwater diverted from the property? Are gutters installed and in good condition?

• Sewer or Septic System: Does the property have sewer or septic? If septic, look for signs of overgrown grass in one area, which could indicate a leak. Has it been inspected and serviced? To replace a septic system could cost me $5,000 – $6,000.

• Crawlspace or Basement: Is there any water damage or discoloration? A musty smell or stains on the walls can be signs of water penetration. Can I upgrade the basement to additional living space?

3. Interior

• Overall Condition: What is the general condition of the interior? Is the layout functional, or is there potential to open up walls for a more open floor plan?

• Functional Obsolescence: Are the bedrooms easily accessible from common areas? Are there any issues with the flow of the layout?

• Repairs and Updates: Are there visible drywall repairs? I will most certainly need to paint the entire interior. Do the light fixtures need updating? Turn on all lights to check the wiring.

• Floors: Are there wood floors that need refinishing? If not, will vinyl flooring work for a retail flip if I don’t rent it? Are the floors uneven or sagging?

• Kitchen and Bathrooms: Does the kitchen need a complete overhaul or just minor upgrades? Is the bathroom in good condition, or does it show signs of mold or damage? Will it need to be upgraded or gutted?

• Bedrooms and Closet Space: Are the bedrooms large enough to fit queen size beds, with ample closet space?

• Fireplace: For a flip, it is an advantage but if you rent, would you want tenants using it? When a rental, we always board it up.

• Laundry Room: Is there a laundry room? If not, is there space to add one?

• Basement or Unfinished Areas: Is the basement free from mold and water damage? If it’s unfinished, will the budget allow for finishing it into a usable space like a family room?

• Storage area: Designated area or room?

4. Mechanical Systems

• Electrical Box: Is the electrical box accessible and in good condition? If the system uses fuses instead of switches, an upgrade will likely be necessary, and you’ll need to pull permits. Is the service at least 200 amps?

• Plumbing: Check under sinks for PVC pipes, which is a good sign. If you find cast iron pipes, they likely need to be replaced.

• HVAC System: In good condition? No damage? Electric with heat pump or gas?

• Water Heater: Adequate or needs replacing?

• Garage doors: Operational or requiring new ones?

Everything included above is exactly what goes through my mind as I walk a property. Once I’ve evaluated the property’s condition, I can estimate the cost of renovations, which helps me determine my max offer price and apply the most relevant exit strategies.

What’s your checklist look like? Similar? Hopefully this one will help you fill in the gaps.