Welcome to episode #5 of House flipping 101. (Blog Version)
“House Flipping 101” is a series on this channel designed to help give you an inside look and understanding of what it is actually like to flip a home. Many times on TV and other platforms, house flipping can be glorified and made out to look a look simpler and less risky than it actually is. My grandfather has been house flipping for over 4 decades now. And with his help and knowledge you can learn what it actually takes to flip a home.
On this episode of “House Flipping 101” we’re going to be covering, “Permits, zoning, and historical issues.”
Video Version: HF 101 Episode #5
Depending on where you live permits, zoning, and historical issues may or may not be part of your flip.
One should always be aware of this and by all means obtain whatever permits, zoning requirements, and historical approvals.
My grandfather does not recommend building without them. These documents can take weeks and in some cases take months before you can start your project.
Make sure you research this before you purchase the property, because time delays with your investments can cost you money.
In some states and areas you may need an architectural drawing along with your permit request.
This will be an added cost when you figure your cost to flip this property.
(So what permits do you need?)
The permits you may need are plumbing, electrical, fire, insulation, and building.
The municipality may want licensed professionals to fill them out and sign for them.
(Okay, so what does zoning have to do with flipping homes?)
Zoning issues can be a problem if the property you purchased is in a commercial zone or residential zone and you want to change the use.
For example: Lets say you purchase a house in what you believe is a residential zone and you want to sell it as a home someone can live in. Come to find out the zoning has changed and you are now in a commercial zone.
What do you do??
You can change your plan and make your flip a commercial flip. Or, you can apply for a variance. (Put definition in video)
Again, this will be an added cost and added time on your flip.
If your flip is an older property make sure you check if it falls within a historical zone. Failure to check this out could cause you to lose time and money.
Not every municipality has a historical committee. Not having an historical committee would be a benefit to your flip if the house is an older house and you want to change things.
Otherwise these committees can be extremely picky. They will tell you what color you can paint it, what type of roof shingles you can use, what kind of siding, and so on. You get the picture.
All of these things, permits, zoning, & historical issues, will add time and overall cost to your flip. And when these costs add up what gets reduced is your overall profit.
So remember that all this should be considered before you invest your hard earned money.
Thank you so much for checking out this blog episode of House Flipping 101. If you enjoyed this video be sure to leave a like and subscribe to the TridentLion channel. All of the previous episodes you’ll be able to find on my YouTube channel.
The next episode on this series will be on Episode #6 on Renovations.
Thank you so much for reading and until the next blog remember…
Always be learning, always be creating, & always be inspired!
Roars to you,