Stop Guessing, Start Inspecting: The Walkthrough

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A systematic property walkthrough separates successful house flippers from hopeful amateurs by helping you spot red flags, estimate rehab costs accurately, and avoid profit-killing surprises. This episode provides a complete six-part inspection checklist that serves as your blueprint for evaluating potential flip properties with confidence.

• Begin with exterior inspection including roof condition, siding damage, window quality, foundation issues, and drainage problems
• Evaluate interior structure by checking walls, ceilings, floors, and layout functionality
• Inspect mechanical systems thoroughly – HVAC, electrical panel capacity, and plumbing are potential budget-busters
• Pay special attention to kitchens and bathrooms as they drive buyer decisions and renovation costs
• Don't skip the basement or crawl space as they often reveal hidden problems like moisture and structural issues
• Look for bonus factors including problematic odors, pest evidence, DIY disasters, and curb appeal potential

If you'd like a copy of my checklist, I'll put a link in the description below so you can download it for yourself.

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CLICK HERE to learn more about our upcoming boot camp, Flipper Camp.

Episode Transcript

Ed Mathews (00:00):
The better you get at the walkthrough, the faster
you can move, the more dealsyou'll do and the better your
margins will look.
Ever sat in your car scrollingthrough Zillow and thought, man,
if I just knew where to start Icould flip one of these.
Yeah, I've been there too.
Most people who want to fliphouses never even start, Not
because they're lazy, butbecause they don't have the

(00:20):
blueprint.
Well, that changes today.
If you give me five minutes,I'll give you real world
flipping strategies thatactually work.
No fluff, no theories, nogatekeeping, just real how-to
information for you to applytoday.
All right, so your marketingactually worked.
The phone rang, or you got anotification that someone filled

(00:41):
out a form on your website andguess what?
You've landed an appointmentwith the homeowner.
Now what?
This is the moment where youseparate yourself from the
finger crossers and step intopro territory, because walking a
property isn't just a formality.
It's where the real money ismade or lost.
In today's episode, I'm givingyou my personal walkthrough
checklist.

(01:01):
This is the exact list I useevery time I step foot in a
house.
It saved me from some straightup money pits and helped me spot
hidden gems I almost walkedaway from, let's face it, when
you're standing in someone'sliving room, you've got two jobs
.
One be a human being, listenand be empathetic to their
situation, be transparent andearn their trust.

(01:23):
Two quickly figure out whatthis house actually needs so you
can make a smart offer.
That second part that's wherethis checklist becomes your
secret weapon, because a smartwalkthrough helps you spot red
flags that most rookie investorstotally miss.
Ballpark your rehab costs withconfidence, dodge those surprise
repairs that sneak up and killyour profit and, most

(01:44):
importantly, leave the housewith clarity, not confusion.
All right, let's dive into it.
The walkthrough checklist forrehab estimating.
I keep it simple and efficient.
Just six core sections Takepictures, jot notes Don't
overthink.
Ready One exterior Start outside.
You'd be shocked how manypeople skip this or rush it Roof

(02:04):
.
How old is it?
Are there missing shingles, anysagging, any shingles cupping
Siding.
Check for rot, warping ordamage.
Windows, foggy seals, oldsingle-pane windows.

(02:25):
Foundation Any visible cracks,signs of shifting Drainage.
Are there gutters in place?
Is there any water pooling nearthe house, driveway and
walkways?
Look for cracks or sectionsthat are sinking or lifting up.
Pro tip Problems with thefoundation alone can easily blow
past $20,000.
Don't miss it.
It's a deal breaker.
Two interior structure.
Now step inside.
Trust your eyes and yourinstincts.

(02:46):
Walls and ceilings Any cracks,stains or obvious patch jobs?
Floors Are there any soft spotsunderfoot?
What kind of flooring?
Carpet, tile, vinyl or hardwood?
Can it be repaired or does itneed to be replaced?
Layout Is it functional or justweird?
Any walls that can or need tomove to create aout?
Is it functional or just weird?
Any walls that can or need tomove to create a better layout?

(03:08):
Watch out for load-bearingwalls.
Look for functionally obsoletelayouts like having to walk
through a bedroom to get to theprimary bathroom.
Three mechanical systems theseare your budget busters if
you're not careful.
Hvac oil, gas, electric.
Is it working?
How old is it?

(03:28):
Is there air conditioning orwill you need to consider adding
it?
Check the service tags and findout the last time a
professional serviced it.
If more than a year they don'ttake care of it.
Red flag Electrical Check thepanel.
How many amps?
If less than 100 amps, you'llneed to upgrade.
200 amps is preferable.
Are GFCIs where they should beNext to sinks in the kitchen and
bathrooms?

(03:48):
Is there ancient wiring likeknob and tube?
If you don't see fuses, that'sa red flag.
Plumbing Any visible leaks,galvanized pipes, run the water.
What's the pressure like?
If you see any drips anywhere,there could be more hidden.
Septic or sewer?
Sewer is preferable, but notcritical.
If it's a septic system, askthe homeowner when was the last

(04:09):
time the system was pumped?
Anything more than two yearsmeans they don't take care of it
.
That's a red flag.
Don't guess here.
If these systems are shot, yourprofits could evaporate.
Four kitchen and baths thesespaces sell houses and they also
suck up budgets.
Cabinets Can you save them orare they landfill bound?
Countertops Is it laminate,stone, butcher, block or other

(04:32):
material?
Appliances Are they clean?
Do they work?
Can they be saved or do theyneed to be replaced?
Bathrooms Do you see any moldor staining?
Are the vanities beat up?
Any cracked tiles?
How about overall style of thehome?
Are we in 2025 or 1982?
Pro tip kitchens and bathsdrive emotional buyer decisions.

(04:53):
Go with clean and updated, butdon't overbuild for the
neighborhood.
Five basement or crawl spacethis is where the skeletons live
.
Be thorough.
Moisture, smell that musty odor.
See white, chalky residue onwalls.
That means water has been inthere.
It's usually easy to fix, butit's a red flag Structure.
Any beam sagging or DIYFrankenstein repairs.

(05:17):
Mechanical access Can youactually get to the furnace and
water heater?
Mechanical access Can youactually get to the furnace and
water heater?
Six bonus factors these don'tfall into a neat box but they
absolutely matter.
Smell Do you smell cigarette,smoke, pets or mold?
They absolutely impact valueand will need to be dealt with.
Any signs of pests, mousedroppings.
See any termite or carpenterant damage.

(05:37):
Diy disasters Questionableadd-ons or carpenter ant damage.
Diy disasters Questionableadd-ons.
Half-finished tile jobs.
Herb appeal Take a step back.
Does this house have a shot atwowing a new family with some
cleanup, flowers, bushes and alittle elbow grease?
Okay, bringing it all together.
As you walk through, keep arunning tally the things that

(05:58):
need to get replaced, repairedor removed.
You're not bidding this like ageneral contractor.
That's for later.
You're just getting a ballparkrehab plan together so you can
reverse, engineer it and createa solid budget when you get back
to your office.
And that, my friends, is whatwe'll cover in the next episode
how to create a rehab budgetusing the checklist you just

(06:18):
filled out.
So for now, lock this checklistinto your phone, your clipboard,
your brain, whatever works,because the better you get at
the walkthrough, the faster youcan move, the more deals you'll
do and the better your marginswill look.
If you'd like a copy of mychecklist, I'll put a link in
the description below so you candownload it for yourself.
See you on the next show.

(06:39):
Thanks for listening to Demos,to Dollars.
If today's episode helped youmove one step closer to your
first or next deal, do me afavor Follow us wherever you get
your podcasts so you never missa show.
I'm grateful to be part of yourjourney.
Now get out there and getcracking.
Bye for now.