Article
What Your $2 Million Dream Home Might Be Hiding: The Hidden Risks of Luxury Flips
June 9, 2025
A stunning contemporary home with five bathrooms, four bedrooms, and absolutely gorgeous finishes throughout. Everything brand new. Listed at $2.2 million in Sudbury, Massachusetts, this property looks like a dream come true.
But here's what the listing doesn't tell you: This 65-year-old home was purchased for just $640,000 in October 2023 and listed for $2.2 million a year later. That's a flip with a 244% markup—and PropertyLens uncovered some potential red flags hiding behind all that beauty.
As PropertyLens co-founder Bob Frady puts it: "Don't get blown away by the beauty of this house, forget to look for issues, and regret it later. Don't let it happen to you. Make sure you know what's going on in that house."
The Luxury Flip Phenomenon
House flipping has evolved far beyond the basic renovations of previous decades. Today's flippers are targeting higher-end properties, creating stunning transformations that command seven-figure prices. But as Bob and John discovered when analyzing 54 Stone Road, even the most beautiful results can hide concerning gaps.
"This house looks like it might have been a flip or complete renovation, maybe possibly even a tear down," Bob noted during their analysis. "We give you a bunch of different questions to ask: when was all this stuff done, confirm with the seller that the permits were pulled, and was it done by a licensed contractor?"
The appeal is obvious: everything is new, from the roof to the HVAC system, resulting in what PropertyLens calls "pocket change" repair costs for the immediate future. But as John points out, "This is changing hands. This was not bought previously to be lived in. This was bought to make money, which is perfectly fine - welcome to capitalism - but I want to know where permits were pulled."
But here's what the listing doesn't tell you: This 65-year-old home was purchased for just $640,000 in October 2023 and listed for $2.2 million a year later. That's a flip with a 244% markup—and PropertyLens uncovered some potential red flags hiding behind all that beauty.
As PropertyLens co-founder Bob Frady puts it: "Don't get blown away by the beauty of this house, forget to look for issues, and regret it later. Don't let it happen to you. Make sure you know what's going on in that house."
The Luxury Flip Phenomenon
House flipping has evolved far beyond the basic renovations of previous decades. Today's flippers are targeting higher-end properties, creating stunning transformations that command seven-figure prices. But as Bob and John discovered when analyzing 54 Stone Road, even the most beautiful results can hide concerning gaps.
"This house looks like it might have been a flip or complete renovation, maybe possibly even a tear down," Bob noted during their analysis. "We give you a bunch of different questions to ask: when was all this stuff done, confirm with the seller that the permits were pulled, and was it done by a licensed contractor?"
The appeal is obvious: everything is new, from the roof to the HVAC system, resulting in what PropertyLens calls "pocket change" repair costs for the immediate future. But as John points out, "This is changing hands. This was not bought previously to be lived in. This was bought to make money, which is perfectly fine - welcome to capitalism - but I want to know where permits were pulled."
"Don't get blown away by the beauty of this house, forget to look for issues, and regret it later. Don't let it happen to you. Make sure you know what's going on in that house."
The Missing Permit Problem
The most glaring red flag in this Sudbury property? Despite extensive renovation work that transformed a $640,000 house into a $2.2 million showcase, PropertyLens found no building permits for the renovation work.
"Building permits are required in Sudbury, Mass," Bob explains in the report. "The first thing we tell you is what the requirement is. But the first thing you have to do is to make sure that all that work was permitted, and if it wasn't permitted, have the city inspect it to make sure that it's up to code."
This isn't just a paperwork issue. As Pittsburgh home inspector Colin Fischetti tells homebuyers: unpermitted work can signal that proper procedures weren't followed. In the Pittsburgh Magazine article on flip purchases, experts warn that "proving you were purposely misled by the sellers may be difficult to prove in court" and "sellers do not have to list anything on the disclosure sheet if they did not live in the property."
The risks of unpermitted work extend beyond immediate safety concerns:
Insurance complications: Unpermitted work may not be covered by homeowners insurance if problems arise.
Resale challenges: Future buyers will ask the same questions about permits, potentially complicating your sale.
City enforcement: As John warns, "The next person says, ‘Well where's all the permits’ and then the city comes and says, ‘this was unpermitted work and you got to rip it all out.’ That's a bad experience."
Why Flippers Skip Permits
The reason flippers often avoid permits is straightforward economics. "Permits cost money," John explains, "And permits take time. They slow down the process."
When a property needs to flip quickly to maximize profit, the permit process, which can take weeks or months and cost thousands of dollars, becomes an unwelcome obstacle. But this shortcut can become the buyer's expensive problem later.
Pittsburgh realtor Jeremy Thieroff, who is also an investor, emphasizes the importance of proper procedures: "When somebody's doing a flip, what sells a house is the kitchens and bathrooms." The focus on visual impact over structural integrity can lead to what experts call "stars in homebuyers' eyes" syndrome.
Beyond Permits: Other Red Flags to Watch
The Sudbury property revealed additional potential concerns that buyers should investigate:
Environmental Hazards
PropertyLens identified high radon risk and PFAS contamination in the area. "Radon is a naturally occurring gas you can't smell, it doesn't light on fire, but it does give you cancer if you're around it long enough," Bob explains. With a basement in the property, radon testing becomes essential.
Tax Assessment Mismatches
The property shows 1,400 square feet in tax records but appears much larger in reality. This discrepancy could trigger reassessment and significantly higher property taxes. As Bob notes, "Taxes have gone up a lot, 40% over six years in Sudbury."
Quality vs. Speed Trade-offs
Pittsburgh inspector Colin Fischetti has seen the results of rushed renovations firsthand. He advises checking simple details like plumbing traps: "We do not install S-traps anymore. Nothing should have an S-trap unless it's a million years old. It's not a correct install."
Smart Strategies for Flip Buyers
If you're considering a flipped property, PropertyLens recommends focusing on three key areas:
1. Permit Verification
Request documentation for all renovation work. If permits are missing, have the city inspect the work to ensure code compliance before closing.
2. Independent Quality Inspection
Hire an inspector who will look beyond the pretty finishes. As John emphasizes: "I want to have an independent inspector look at all the quality of the work... let's make sure that all the electrical was done right, all the plumbing was done right, all the roofing was done right."
3. Environmental Testing
Don't skip radon testing or water quality checks, especially in areas with known contamination risks.
The Bottom Line
The Sudbury property exemplifies both the appeal and the risks of today's luxury flip market. Everything appears new and move-in ready, but significant questions remain about the quality and legality of the work performed.
As Bob concludes: "This house looks spectacular. Still got to check though." At $2.2 million, buyers can afford to be thorough, and they can't afford not to be.
Beautiful houses can hide ugly problems, and the prettiest properties sometimes come with the biggest surprises. When you're spending seven figures, you deserve to know exactly what you're buying. PropertyLens helps you see beyond the marble countertops and designer fixtures to understand the real risks and costs of luxury homeownership.
Because at the end of the day, you want your dream home's personality to match its looks.
