1. Price
Before looking at any property, you have to ensure that its price is below the value of the market of real estate within your area; if not, you will waste time looking at several properties you will not profit from. Therefore, you have to ensure that it is way below the other house prices which you can fix, hold, and pay commission and fees while still making big profits.

2. Foundation
If foundation damage exists, you have to see the cost of fixing it. Foundation damage is capable of draining budgets. Therefore, until your skills are at a comfortable level when it comes to judging amounts of foundation damage, contact a professional for quotes and factor this into your overall budget. When looking at the overall house, you need to look for cracks on windows, on brick mortar, on doors, as well as within corners. A lot of times, you will feel your foundation sinking within particular house areas. Ensure to walk to room corners to tell if piers have sunk.

3. Roof
Check your roof. This can be done by counting the shingle layers. Usually, if there are more than two shingle layers, you have to replace your roof. Plus, as you walk inside the house, take a look at the ceiling to search for water spots as this would be a big indicator of needing to replace the roof. Your roof and foundation are usually two of the biggest expenses.

4. Walls
Search for sheet rock that is damaged or holes that would need replacing. Drywall happens to be cheap and not a huge deal at all; however, this does cause tons of buyers to shy away from properties.

5. Electrical
Check out the breaker box’s condition. If you want to add A/C units, you need to upgrade your electrical; remember this. Next, if your power is on, check your lights and purchase an inexpensive power test which can be plugged into walls to tell if there is power there. This will give you an idea whether there are electrical issues within the house.

6. Heat and A/C
Check the condition and age of the A/C unit within the possible flip to see whether it needs replacing. Leave room within the overall budget, if the unit looks like it needs to be replaced.

7. Plumbing
Ensure that toilets flush and that water runs. Water heaters are usually turned off, so this cannot be test; however, you can check its age to give you an idea of whether it needs replacing. View the amount of toilets, faucets, and shower heads that might be required and factor these into the overall budget.

8. Flooring
Find out how much flooring needs to be replaced or fixed.

9. Paint
Remember to price paint for the indoors and the outdoors.

Normally, all appliances should be replaced, so take these into consideration, too.

Article Source: http://www.articlesbase.com/real-estate-articles/what-to-look-for-when-fixing-house-flipping-properties-1282898.html