Flipping houses starts with a promising investment opportunity and can quickly develop into a profitable business or a financially beneficial hobby. However, to be successful, aspiring house flippers should obtain the necessary building and renovation permits before starting their fix and flip project.
Do I need a Building Permit to Flip Houses?
The simple answer is yes – you should always ensure you have the correct permits for the work you intend to complete on a project. In addition to helping you save time and money, permits also serve as proof that the renovations made to the property are insured, safe, and professional.
Why should I get a building permit for my house flipping project?
There are several reasons to obtain building permits required by your local city ordinances, the primary reason being that flipping a house without a permit is against the law. Failure to obtain a building permit can result in fines and the demolition of the property or deconstruction of certain remodeling projects.
Another important reason for a building permit is to improve the safety of the renovated property and reduce potential risks such as fire hazards, electrical issues, and structural failure. Mandatory inspections will be conducted from the local code official to ensure code guidelines and safety standards are being met throughout the duration of the project. This also helps protect your investment and minimizes the risk of financial loss if something were to go wrong with the project.
Last but not least, permits will help you accomplish your end goal easier – selling the property. During the selling process, you may be required to itemize updates made to the property and provide proof of the permits you obtained to perform the work as well as any inspections that were done throughout the process. With the reassurance of knowing that the property was remodeled lawfully, safely, and correctly, buyers will be more confident in their decision to purchase your remodeled property.
How do I get a building permit to flip houses?
Building permits can be obtained from the local municipality in which your investment property is located. Contact the local building department to find out how to get the required permits for your project. If you’re working with a remodeling contractor, they may acquire the necessary permits as part of their standard services.
Tip: Before committing to investing in a property, educate yourself on the local municipality’s rules for a fix and flip project. Costs, as well as the number of required permits per project, can vary between different municipalities, which can significantly impact your decision.
Hard Money Lenders in Texas and Tennessee
Loan Ranger Capital is the top fix and flip lender in Texas and Tennessee. We’re a direct lender, so we always have cash on hand and will never broker or sell your loan. Our competitive, low rates on Fix and Flip loans will help you maximize profits on your flipped property.
If you’re looking to invest in a fix and flip property in Texas or Tennessee, contact us today to learn more about our financing options.