There are some important steps you should take prior to flipping property in Ontario. If this is your first attempt at flipping homes you will need to first develop a checklist to determine whether the prospective property is a good deal. Start by having the foundation inspected, if the foundation has serious flaws then you may either have to repair or replace it. With the cost of replacing a foundation running into the tens of thousands you have to determine whether it makes sense to purchase the property. While real estate prices are on the rise there are some renovation jobs that restrict your ability to cut corners and save money with one of them being a new foundation. In theory you could go with a simple concrete slab but that is still expensive.
Inspecting the Plumbing System
With some of the plumbing systems in Ontario being nearly 100 years old or greater you will need a qualified Etobicoke plumber, to assess the overall plumbing system from inside the home all the way to the municipal water supply. If the system is deficient or at risk of failing you will need to replace it. While the municipality is responsible for the system up to point of your property, you are responsible for your connection and if it backs-up you could have raw sewage seeping onto the property. A qualified Etobicoke plumber will be able to assess the property to ensure that the plumbing system is suitable for your needs.
Identifying Potential Legal Obstacles
If you have determined that the property seems like a good investment you should check to see if there are any potential legal obstacles. A simple title search will reveal whether there are any liens against the property. If there are liens they will need to be removed when you purchase the property or you may not be able to flip it for a profit when it comes time to sell. Pay close attention to any tax liens by the government and bear in mind that you are required to pay a land transfer tax each time you buy/sell real estate in Ontario.
Is there any environmental risk associated with the property? While the property may be residential now, in the past it could have been an industrial location or commercial business. During those times the soil could have been contaminated. Even if the current property owner is using home heating oil, if there was a leak the soil would be contaminated and if you purchase the property without doing your research then you may have to pay for the environmental remediation work. The only way to know whether you are safe is to have the soil tested prior to making any firm offers.
The good news is you can make a considerable amount of money flipping houses in Ontario you just need to be proactive at the start to make sure the property you buy can be renovated quickly and sold for a tidy profit.