Big Six

What it is

The Big Six is Ross’s mental checklist for the high-cost renovation items you have to budget for before you buy. Six line items that can each run $10K or more, so you don’t miss something that throws off the whole deal.

The six: structural, roof, plumbing, electrical, HVAC, windows and siding.

“I call this the Big Six because there are six big ticket items that at the very minimum you need to get down on a piece of paper into a calculator so you can make sure that you’ve not missed anything that can really throw off a deal.”

Why it matters

Walking properties, you eventually build “a computer system in your head where you just look at photos of a house and you’re like ah it’s a $40,000 renovation or somewhere close.” Until then you need a checklist, because a missed roof or a missed plumbing replacement is the difference between a profitable flip and a loss. Each of the Big Six runs $10K+. If all six are present, you’re starting at $60K before flooring, paint, kitchen, or anything cosmetic.

This is the budget you build before you bid. Conservative. Above what it’ll probably actually cost. “We’re being on the conservative side because this is what I’m assessing before I buy a house.”

How it shows up

Structural. If the triple threat tells you there’s structural repair (cracks getting worse, a settling foundation, joists sagging), budget $5-10K depending on severity.

Roof. Spots on the ceiling inside? That’s the first tell. Curled shingle edges, visible granule loss, color loss, missing shingles. Budget $10K for an average-sized house. If it looks like a skate park up there with bumps everywhere, it probably needs new decking too. Budget $15K.

Plumbing. Cast iron drain lines or old galvanized water lines are the big red flags. Galvanized builds up on the inside and kills water pressure. In some municipalities, touching the water lines at all means you have to replace them to the road. Presence of newer white PVC cleanouts usually means the plumbing’s been worked on recently, which is good news. No cleanouts on an older house usually means a big plumbing job is coming.

Electrical. Old screw-in fuse box instead of a breaker panel. Non-Romex wiring. Old service mast instead of a modern overhead or buried service. If any of these are present, it’s a panel upgrade minimum and potentially a full rewire.

HVAC. Does it actually run? Consumer space heaters in rooms are a tell: “they bought those because the HVAC is not doing its job.” Old oil tanks, old boilers, missing condensers, window AC units where there should be central.

Windows and siding. Full window replacement is expensive and Ross avoids it when he can. “I will save windows and repair them in most every case.” Siding and windows often go together; if windows are bad enough to replace, the siding probably needs work too. Water getting in the walls because of missing gutters or bad flashing puts this in play.

Each item present, add its budget. Pair the Big Six with the mirage (what’s being hidden) and the triple threat (what’s getting worse), and you’ve got Ross’s three-part pre-offer assessment.

Related

triple threat, the mirage, assessing properties, scope of work, fear tax