Home investors are always looking to make a nice profit on the homes they flip. Sometimes this leads unscrupulous renovators to make cosmetic upgrades which hide ugly problems. Here’s how to protect yourself. When inventory is tight and newly renovated homes are wooing prospective buyers, you need to take a step back and remember that the home you’re hunting for is a long-term investment. While futuristic appliances and gleaming hardwood floors may seduce you into making a quick offer, understand that there’s much more to a home than what lies on the surface. Investors who renovate homes want to maximize their profit as quickly as possible. While many are upstanding folks, there are those out there who will cut corners in order to boost their return. Sometimes when a home is renovated, an investor will do a “lipstick flip.” Basically this means fixing up what’s cosmetic and leaving the rest as-is. Paint, flooring, appliances, fixtures… all may get a tune-up. But th...
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