Rehabbing A Home
When buying property for rehabilitation, it is important to do your house clean-up and repairs in the proper order. You don’t want to get ahead of yourself or waste time and money on the project. Below are some steps to follow and the mistakes to avoid:
Assess The Project: Discuss The Design and Scope of Work
Once you have found a reliable and experienced contractor, discuss your ideas for the project with him. Decide whether to modify the layout of the house, what repairs will done and how they will be accomplished.
Demolish and Clean It Out
Getting a dumpster is a crucial step when you rehab a house. Go in and remove all the trash and debris left behind from previous owners. Demolish any damaged sheetrock, ceiling tile, kitchen and bath fixtures, out dated appliances, etc.
Landscaping and Exterior
Always start remodeling the exterior first when you rehab a house. Take care of the roof, windows and siding to prevent damage to the inside of the property. Change all the locks on the doors to prevent vandalism and theft.
Electrical, Plumbing, Insulation, Drywall, and Paint
While the contractor or sub-contractors are working on the exterior, it’s a good time to have the electrician and plumber working inside. Have the electrician come out a day or two earlier to complete any rough wiring in the kitchen and bathrooms. When the electrical and plumbing are done, it is time to bring in the contractor to take care of any framing, insulation, drywall, paint, door installation, trim, etc.
Kitchen, Bath, and Flooring
To rehab a house successfully, the kitchen and bath installations are a crucial step. These are the most valuable upgrades to the house. At this time the sinks, tubs, vanities, toilets and cabinets will be installed by your contractors. Then, one of the last things to do to rehab a house is installing the floors. Depending on your market and property location, the type of floor will vary. The kitchen and bath will usually get ceramic tile or vinyl adhesive tile.
There you have it! Add on the finishing touches at the end and you will have a new beautiful home! Before moving forward, read through the some common mistakes to know what to avoid when rehabbing a home
Biggest Rehabbing Mistakes
Big Mistake #1: A Lack of Extensive Research
Many years ago, I worked for a paint manufacturer and learn a valuable lesson: Painting is 80 per cent preparation and 20 per cent application. This very same rule applies to buying and rehabbing property. 90 per cent of your time will be spent locating and purchasing the property itself.
Big Mistake #2 Do All the Work Yourself to Save Money
As rehabbers, we can easily convince ourselves to do the work and save a few dollars. This train of thought is fraught with danger on two levels. Firstly, if the level of workmanship is substandard then this can and will affect your resale price. Experience has taught me one very important lesson: If you’re no good at it yourself, pay an expert to do it.
Big Mistake #3: No Exit Strategy
Firstly, never enter a project if you cannot afford any unforeseen holding costs. Secondly, there is no shame in holding a good property. If the market doesn’t agree with you at that particular time, then rent it out for twelve months.
Big Mistake #4: Spending Too Much on the Rehab
The great temptation of renovating is to do too much. While the “wow” factor is critical, you must keep your emotions out of the equation and strictly adhere to your budget. Allow for a buffer to cover any surprises (usually 10 to 15 per cent). I certainly fell into the ‘do too much’ trap during my early projects. Always have your costs estimated accurately prior to purchasing a property. Overall, understand that things can and do go wrong in this business. Now that you are aware of the pitfalls, you will be better prepared from the outset
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