Although the exact rehab process will vary based on the property and the exit strategy, there are 10 general steps to follow to rehab a house:
- Evaluate Current Property Condition.
- Calculate ARV and Offer Price.
- Create a Rehab Checklist.
- Calculate a Budget.
- Hire a General Contractor.
- Pull Permits.
- Begin Demolition.
- 1 How much does it cost to fully rehab a house?
- 2 What is the first thing to do when renovating a house?
- 3 Do you rehab house interior or exterior first?
- 4 Is rehabbing a house worth it?
- 5 How do I get money to rehab my house?
- 6 What is the difference between rehab and renovation?
- 7 How long does it take to rehab a house?
- 8 How do you renovate a house with no money?
- 9 How often should you update your house?
- 10 Which room should you renovate first?
- 11 In what order should I remodel my kitchen?
- 12 How much does it cost to restore an old house?
- 13 How to Rehab a Property in the Proper Order
- 14 About This Article
- 15 Did this article help you?
- 16 What Does Rehabbing A House Mean?
- 17 How To Start Rehabbing Houses
- 18 Average Costs Of Rehabbing A House
- 19 Rehabbing Properties In 7 Steps
- 20 Types Of Rehabbed Properties
- 21 Working With Professionals
- 22 Summary
- 23 How to Renovate a House—Whether You’re Renting, Flipping, or Moving In
- 24 1. Secure the property
- 25 2. Create a home remodel game plan
- 26 3. Decide on yes, nos, and maybes
- 27 4. Remove debris
- 28 5. Start the interior
- 29 6. Begin repair work
- 30 7. Paint
- 31 8. Replace or repair flooring
- 32 9. Tackle exterior needs
- 33 Rehabbing a House From Start to Finish – REIClub
- 126.96.36.199.1 Step One – Meet With Contractor and Define Job
- 188.8.131.52.2 Step Two – Define Job and Buy Materials
- 184.108.40.206.3 Step Three – Phase One: Demolition
- 220.127.116.11.4 Step Four – Phase Two: Roof, Windows and Siding
- 18.104.22.168.5 Step Five – Phase Three: Plumbing and HVAC
- 22.214.171.124.6 Step Six – Phase Four: Framing and Subfloors
- 126.96.36.199.7 Step Seven – Phase Five: Sheet Rock (Drywall)
- 188.8.131.52.8 Step Eight – Phase Six: Painting
- 184.108.40.206.9 Step Nine – Phase Seven: Installing New Kitchens and Baths
- 220.127.116.11.10 Step Ten – Phase Eight: Punch Out
- 18.104.22.168.11 Step Eleven – Phase Nine: Carpeting
- 22.214.171.124.12 Step Twelve – Phase Ten – Clean Up and Landscaping
- 126.96.36.199.13 Step Thirteen – Phase Eleven – Marketing
- 188.8.131.52.14 Step Fourteen – Phase Twelve – Final Repairs Required
- 34 Steps for Rehabbing a House From Start to Finish
How much does it cost to fully rehab a house?
Cost to rehab a house. The average cost to rehab a house is $20,000 to $75,000 or $20 to $50 per square foot. A full gut rehab costs $100,000 to $200,000 to remodel a house completely. Generally, the cost per square feet gets cheaper as the house size increases.
What is the first thing to do when renovating a house?
7 Things You MUST Know Before Starting Your Home Renovation
- Invest in a Key Lockbox.
- Spend Time in the Space.
- Be Realistic About Your Timeline.
- Expect the Unexpected.
- Interview Multiple Contractors.
- Renovate Your Kitchen First.
- Be Specific About Design Ideas.
Do you rehab house interior or exterior first?
Do all of the foundational and exterior work first. It’s natural to want to move on to the next phase of your project, but ensure the house is sound before you begin interior work. That means replacing windows and putting on a new roof if needed.
Is rehabbing a house worth it?
A fixer-upper may be a good investment. But it can also be a huge money pit if you estimate renovations incorrectly, contract out for most projects, and skip an inspection. To ensure a fixer-upper house is well worth the money, look at comparable homes (known in real estate as comps) in the neighborhood.
How do I get money to rehab my house?
It can be in the form of:
- A purchase mortgage, with additional funds for renovations.
- A refinance of your current mortgage with a cash payout for home improvements.
- A home equity loan or line of credit (HELOC)
- An unsecured personal loan.
- A government loan, such as Fannie Mae HomeStyle loan or FHA 203(k) loan.
What is the difference between rehab and renovation?
Renovation is the process of making something look and function like new. Rehabilitation: Rehabilitation means something very similar to renovation, but it is often used in a slightly different context.
How long does it take to rehab a house?
It can take anywhere from six weeks to six months to rehab a home. There are several factors investors can use to determine how long a project will take, including the size of the property, the specific renovation projects, and your team of laborers.
How do you renovate a house with no money?
26 Ways To Renovate a House with No Money
- How to Renovate a House with No Money.
- #1: Do a Deep Clean.
- #2: Paint the Exterior.
- #3: Landscaping.
- #4: Repaint the Windows & Shutters.
- #5: Upgrade the Front Door.
- #6: Repaint the Interior.
- #7: Repaint the Kitchen Cabinets.
How often should you update your house?
“The rule of thumb is to update your home every five to ten years. This does not necessarily mean you have to undertake costly renovations that involve ripping out tiles and knocking down walls. Often just changing small features such as door handles and taps can have the desired effect,” Goslett explains.
Which room should you renovate first?
This is why experts agree that choosing to remodel your kitchen or bathroom first is traditionally the smartest move. And while kitchens typically cost more to remodel than bathrooms, they tend to yield a better return on investment, so they end up paying for themselves over the long run.
In what order should I remodel my kitchen?
When you’re ready to put the remodeled kitchen back together, we recommend this order of steps to complete your renovation:
- Configure plumbing and electrical.
- Paint the room.
- Install new flooring.
- Add kitchen cabinets.
- Install countertops.
- Place large appliances.
- Fasten cabinet hardware.
- Put in the backsplash.
How much does it cost to restore an old house?
Depending on the square footage, the average cost to gut and remodel a house can be anywhere between $100,000 – $200,000⁴. Gut renovation cost per square foot ranges between $60 – $150 and includes new plumbing, appliances, structural improvements, a new roof and an HVAC.
How to Rehab a Property in the Proper Order
This article may be downloaded in its entirety here: Download ArticleDownload ArticleWhen purchasing a property for rehabilitation, it is critical to complete your house clean-up and repairs in a certain order. Not wanting to get ahead of yourself or squander valuable time and resources on the project is your top priority. Approach the procedure in a methodical manner, and avoid becoming irritated if things don’t go exactly as planned. Here are some guidelines to guide you through the process of restoring a home or business property.
- 1 Conduct a thorough inspection of the property. Before you begin work on the property, make a complete inspection of it. Make a note of which objects are in good shape and which areas require attention. It is beneficial to have a professional inspector accompany you on your inspection. He or she will be able to spot things that you would otherwise overlook. A competent home inspector may be found in the United States through the American Society of Home Inspectors (ASHI). As you walk around the property, ask the inspector any questions you have.
- The heating system, air-conditioning or HVAC system, interior plumbing, electrical system, roof, attic, any visible insulation, walls, ceilings, floors, windows, doors, foundation, sewer line, and basement should all be included in the house inspection
- However, the basement should not be included. If you are not a contractor, you should not do the inspection on your own
- Instead, hire a professional. During the inspection, take photographs of everything you see. In most cases, your inspector will take pictures of issue locations for their records, but you should also have evidence for your own records. The cost of an inspection is determined on the size of the property being inspected.
- 2 Make a checklist of all the things you need to do. Create a rehab checklist when you’ve identified the areas that require attention. This will assist you in staying on schedule and avoiding missing any necessary maintenance. Take into consideration both interior (such as walls, paint, etc.) and exterior (such as landscaping, gutters, and outdoor lights)
- The checklist should be quite extensive and should include a description of everything that needs to be completed on the property. The inspection report can be utilized to produce the checklist
- However, it is not required.
- s3 Make a financial plan. Go over your checklist and estimate how much each repair will cost you at the end of it. An Excel spreadsheet is a fantastic tool for organizing and tracking your spending. Each each repair should have its own budget, which should be detailed. As a result, if the cost of your repairs is greater than your budget, you will need to make some adjustments to the checklist
- Prepare a contingency plan in case of unforeseen complications. These are unavoidable occurrences. Once you begin the rehabilitation process, you may encounter new problems. If you want to sell the property once the rehabbing is completed, think about how much you will be able to get for it once the rehabbing is completed.
- 4 Collaborate with a third-party contractor. Having a reputable contractor on your side will make the restoration process much simpler. Make sure to take your time when looking for a qualified contractor to hire. Contractors can be identified through recommendations, your local building department, real estate investment associations, and general job boards, among other avenues of distribution. Pre-screen each candidate to establish if he or she is a suitable fit for your project before you hire him or her.
- The following factors should be addressed in the pre-screening questions:
- An experienced contractor is one who has worked for you for at least three years
- Equipment: A contractor should be in possession of his or her own equipment. Employees: you want to see enough assistance to ensure that the work is completed successfully. Licensing: A contractor should hold a valid license issued by the state or another local authority. Liability and workers’ compensation insurance are two types of insurance. The utilization of subcontractors: identify whether or not the contractor will be employing subcontractors to complete the task. In order to receive at least three favorable references, you must first identify them.
- Each contractor who has expressed interest in working with you should submit a formal bid. Choose a contractor that is within your budget and has demonstrated his or her ability to complete a quality work.
- Take the contractor on a walk-through to ensure everything is in order. As soon as you’ve decided on a contractor, you may want to take another look around the property. In addition, your contractor can assist you in making revisions to your budget and checklist.
- Once you’ve finalized your agreement with the contractor, set a completion date for the project. This will ensure that all parties involved are held accountable and are on the same page.
- 6 Obtain any permits that may be required. When it comes to rehabilitating a home, permits are usually necessary. Having all of the necessary permissions in place will assist you in staying out of trouble with the local building codes. Get in touch with your local building department to find out what you require. This may differ depending on the sort of work you’ll be doing
- Renovations that often need a permit include the installation of new electrical wiring, the expansion of floor area, the construction of a fence exceeding six feet in height, and any work that entails the connection to a public sewage line. In most cases, permits are not required for tasks such as putting in new flooring, painting, and changing windows and doors
- But, in other cases, permits are required. Your contractor can assist you in obtaining the necessary permissions.
- 1Demolition and rubbish removal should be started immediately. Remove any rubbish that has accumulated inside or outside the premises. Any objects that are broken or that you will be replacing should be removed (flooring, cabinets, appliances, light fixtures, toilets, water heaters, etc.) It is possible that outside work will entail pruning any dead trees or shrubs, as well as removing garage doors and fences as well as decks, siding, and other structures. 2 Take care of any roofing or foundation problems. Prior to beginning work on any inside repairs, check to see if the property need a new roof, which should be completed before starting on any outside repairs. Any water that seeps into the building should be avoided at all costs. Repairs to the slab or block-and-beam foundation are also required at this time.
- If you take care of the external concerns first, you will attract less attention to the home while it is being remodeled.
- 3 Replace all of the doors, windows, and trim. Once the foundation has been completed, the outside doors and windows should be installed. This will safeguard your property from the effects of the weather as well as the entry of wild animals. The installation of new windows and doors will help make the home appear less like a construction site.
- Before you purchase the doors and windows, make a list of how many you’ll need and take measurements of each. Extreme attention should be used in measuring
- New entry doors are a nice way to update the appearance of a home while also increasing its value.
- 4 Work on the plumbing, as well as the heating, ventilation, and air-conditioning systems is underway (HVAC). Water heaters, tubs and showers, toilets, and water/gas lines are some of the plumbing repairs that may be required. A new HVAC system or repairs to an existing HVAC system may be required. During this time period, it is also possible to work on the electrical system.
- If you’re installing an outside air-conditioning unit before someone will be living in the house full-time, proceed with caution. You don’t want it to be taken away from you.
- If you are installing an outside air-conditioning unit before someone will be living in the house full-time, proceed with caution. It’s important to you that it doesn’t get taken.
- Before you begin painting, you should thoroughly clean the walls. Some painters lightly sand and clean the wall after the primer has been applied
- Others do not. To avoid using a straight up and down motion while painting the walls, make your strokes in the shape of a V or W.
- 7 Put in new light fixtures as well as new flooring and equipment (such as stoves, dishwashers, washing machines, and dryers)
- Lighting is an excellent method to transform the appearance of a house, and it is quite affordable when compared to other types of renovations. Vinyl or ceramic tile, hardwood, carpet, or laminate flooring are examples of flooring options. Installation of the flooring occurs later in the rehab process in order to avoid putting paint on the floor and to avoid damage caused by personnel entering and exiting the property. Because you want your floors to be as new as possible when you’re finished, you might want to consider completing the majority of the inside work before laying down your flooring. At the absolute least, make an effort to keep new flooring away from heavy foot traffic while doing interior work.
- 8 Complete the project by adding the final touches. Once everything is completed, check through the work that has been completed and make any necessary adjustments. It’s possible that you’ll need to touch up paint or make any last-minute modifications to the plumbing, heating, and cooling, or electrical systems. Additionally, you should properly clean the premises.
- 9 Create a landscape around the home. Start working toward the front of the room since here is where people will first see you. Fences, patios, decks, sidewalks, porches, and driveways should all be repaired first before moving on to further projects. Once those tasks have been completed, add dirt to prepare the area for planting flowers, shrubs, and other plants. The back yard should be the last thing to tackle.
- Before you acquire plants, you should determine how much sunlight your property receives. In areas where there are numerous trees, choose plants that do not require a lot of sunshine to thrive. Inquire with someone at a garden center about your plans, and ask for recommendations on the types of plants that will function best on your site. Consider how much time you will have to devote to your landscape. For those who are short on time and want to keep their yard looking nice, search for low-maintenance choices. If your windows are at a low level, plant low-growing shrubs, trees, and ground cover instead of taller plants to give the illusion of space. You don’t want to block the view in any way.
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- QuestionFirst, should I paint the outside of the house or should I do some landscaping? Carla Toebe is a Washington State registered real estate broker based in Richland. She has been a licensed real estate broker since 2005, and in 2013 she launched the real estate company CT Realty LLC with her husband, David. A BA in Business Administration and Management Information Systems from Washington State University was her capstone experience before entering the workforce. Contribute to wikiHow by unlocking this expert answer, which will help to fund the website. Many times there is landscaping up against the home that has to be cut back or removed, and that piece of the landscaping should be completed in order to allow for the painting of the house to take place. Otherwise, it is likely to be more dependent on what requires the most amount of attention, or what is the most urgent. If everything has to be done, the front of the home, including painting and landscaping, should be completed before the back of the house. Question Is there a limit to the amount of money you may invest, say, 50 percent of the value of the property, on how much you can make? Carla Toebe is a Washington State registered real estate broker based in Richland. She has been a licensed real estate broker since 2005, and in 2013 she launched the real estate company CT Realty LLC with her husband, David. A BA in Business Administration and Management Information Systems from Washington State University was her capstone experience before entering the workforce. Answer from a real estate broker expert
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- Visiting stores such as Menard’s, Home Depot, or Lowe’s is easy, and they have a large selection of products for your property rehabilitating project. Please be patient. Property rehabbing frequently goes over budget or does not occur within the anticipated time frame
- Make necessary repairs as soon as possible. Attempting to conceal problems with low-quality work will invariably end in dismal consequences in the long run.
About This Article
Summary of the ArticleX Prior to attempting to repair a property, remove any garbage, broken goods, or anything that will need to be replaced from the property. Start with repairing any issues with the roof or foundation, and then replace any doors, windows, and trim that are in need of replacement. After that, you should hire a contractor to assist you in making sure the plumbing, furnace, and air-conditioning systems are all functioning correctly. Painting the walls and ceilings, as well as installing the flooring and appliances, are the final steps.
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The most important takeaways are as follows:
- What does the term “rehabbing” imply
- Seven stages to renovating a property
- Several types of rehab properties
- Working with experts
There are a variety of real estate exit plans from which investors can pick. As may be expected, novice investors are frequently most familiar with the process of remodeling a home. While this specific method necessitates the most effort, the benefits are well worth the effort. Rehabbing houses continues to be one of the most profitable real estate investment techniques available today. Time and meticulous attention to detail, on the other hand, are required. In order to understand the subtleties of a genuinely lucrative rehab, investors must get familiar with a wide range of talents.
In reality, rehabbing has historically been the method via which the most profitable real estate investments have been made.
Please keep in mind, however, that while rehabbing might result in substantial monetary advantages, this is not a guarantee of success.
Deciding whether or not this real estate exit plan is correct for you might be a challenging decision. Ultimately, rehabbing may be a profitable investment strategy if and when the following conditions are met:
- You are not need to get paid promptly
- Nonetheless, it is preferable. You are determined to raise awareness of your company’s brand since it represents a significant marketing opportunity
- On the given property, there is the possibility for significant profit margins
- The property is situated in a secure environment. You have a dependable team with whom to collaborate, which may include contractors, lenders, a title business, and so forth.
What Does Rehabbing A House Mean?
The term “rehabbing” refers to when an investor renovates a property in order to increase its value. Rehab may be conducted in a variety of ways, but the most common is to acquire a property at a bargain and renovate it with the intention of reselling it. The term “home flipping” refers to the process of selling a house. Rehabbing properties as an exit strategy for real estate investing might result in significant profit margins. Property owners who repair their properties for their own personal enjoyment or to raise the value of their property are also considered to be rehabbing.
How To Start Rehabbing Houses
When deciding whether or not rehabbing houses is the best exit plan for you, there are a few actions you can take to ensure your success. First and foremost, it’s always a good idea to outline your professional and financial objectives. Examine your life goals and determine where you want to be in five, ten, or fifteen years and what kind of money you will require to live the life you choose. Record your objectives as you go in order to get a clear image of your ideal lifestyle. At the same time, make an effort to think about your reasons.
- After you’ve established your objectives, it’s critical to assess your existing strengths and shortcomings.
- Perhaps you are very good at networking or are really well organized; these abilities will assist you in determining where to begin.
- Do not be scared if you believe that your financial situation is less than perfect as you prepare to begin your journey.
- In order to get started, investors who do not have access to large amounts of capital might collaborate with a private lender or business partner.
Average Costs Of Rehabbing A House
The average cost of rehabilitating a property ranges from $20,000 to $80,000, while the final cost may be more than the average. When it comes to pricing a rehab, the most important aspect to consider is the location, which has an influence on the cost of materials and labor. The age and size of a house will have an impact on the entire budget as well. Certain remodeling types might also have an impact on the average cost. For example, structural upgrades such as foundation repairs or the installation of a new roof will be significantly more expensive.
When determining the cost of your restoration job, look at internet estimates.
Rehabbing Properties In 7 Steps
Understand that rehabbing is one of the most difficult real estate exit strategies to master because of the high level of complexity involved. Because there are so many components involved, it is possible that threats lurk around every corner. When starting out in the business, it is recommended that you start with projects that need the least amount of effort; this will avoid the situation where you are thrust into foreign territory and are unable to traverse it effectively. Then, as your expertise and confidence grow, you will be able to take on ever larger tasks that will ultimately prove to be more profitable as time goes on.
For your rehab business, we highly urge you to use the same procedure, as it will assist to streamline the entire campaign. For time and money savings, it is critical to have a system in place that has been proved. The following offers a high-level overview of the complete rehabilitation strategy:
- Development of the Scope of Work: Create a step-by-step checklist that lists everything that your contractor is responsible for doing across the whole property. Allowing prospective contractors to know that you are not a retail client by bringing in numerous to bid on your business will help them understand that you are not a retailer. Contract Communication at the Time of Signing:As an investor, it is critical that you defend your interests. Before you begin treatment, double-check that all of the necessary documentation has been signed. Check the following papers for signatures: Independent Contractor Agreement, Scope of Work, Payment Schedule
- Contractor Insurance Indemnification Form
- W-9 Tax Form
- And the Final Unconditional Waiver of Lein
- Six critical documents. You will be in charge of supervising your contractors throughout the physical rehabilitation process at this point in the process. Final Walkthrough and Payments to Contractor: The final walkthrough and payments to your contractor must be completed as part of the property closeout. Making Your Property Ready to Sell: Get your property as clean and ready to sell as soon as feasible.
Types Of Rehabbed Properties
Within a specific real estate exit plan, there are frequently multiple categories to consider, and rehabbing is no exception. The following are the three types of rehab projects that investors should be aware of when considering a rehab project: Despite the fact that each treatment type may recommend its own unique departure route, these techniques are interchangeable. The fundamental ideas of restoring and upgrading a house will continue to apply in the future. However, the manner in which earnings are generated will change depending on the sort of rehabilitation facility.
Continue reading to find out more about each form of property rehabilitation.
A personal rehab is exactly what it sounds like: a property is repaired for the sake of the owner’s personal enjoyment and benefit. It is this sort of project that occurs when a homeowner makes renovations for his or her personal use. Their importance might be connected to usefulness, aesthetics, and even increasing the value of a property. In the construction industry, personal rehabs are frequently referred to as home renovations or home improvement projects. Personal rehabs might be a fantastic beginning point for homeowners who are interested in flipping their homes for a profit.
Furthermore, personal renovations may be an excellent location to establish a working connection with contractors, learn about the scope of work, and even learn about project management.
If you’ve ever seen HGTV, you’re probably already familiar with the concept of house flipping. This common rehab technique is acquiring a property, remodeling it, and then swiftly reselling it to make a profit on the investment. Secureing a favorable buying price and finishing the repair as rapidly as possible to reduce holding fees are frequently the keys to achieving a successful flip. However, when it comes to flipping a coin, time is money. The completion of a flip in the least period of time feasible is therefore critical in order to lower the costs of owning and managing the property as much as possible.
This technique also necessitates an in-depth understanding of the business and the rehabilitation process.
Request permission from your mentor or another investor in your network to accompany them on their next transaction. This can offer a first-hand understanding of the necessity of a strong team, a tight deadline, and a thriving market in a competitive environment.
Typically, this sort of rehab project entails remodeling a home in order to rent it out to prospective tenants. Although this method is extremely similar to a rehab and flip situation, you will be renting the home to a prospective tenant rather than selling the property. Many investors begin by flipping properties and gradually progress to the point where they are able to add a rental property to their portfolio. This is a fantastic approach to generate a consistent stream of passive income. Examine current market circumstances if you are undecided about whether or not to sell or rent a possible repair property.
Additionally, before renting a rehab property, you will need to decide if you want to manage the tenants yourself or whether you want to engage with a property management company.
Working With Professionals
You should contact with specialists if you are feeling overwhelmed by the amount of labor required to renovate a property on your own timetable. We strongly advise that you get your house inspected before you sign any paperwork. If this is the case, have an inspection performed prior to beginning work. A house inspection report will be an invaluable reference point for specialists when determining the primary issues that will require immediate repair. If you are renovating a home, you may choose to seek advice from specialists such as architects, contractors, engineers, and interior designers.
Rehab vs. Fixer-Upper
You should seek expert help if you are feeling overwhelmed by the amount of effort required to restore a property alone. We strongly advise that you get your house inspected before you close on it. Inspections should be performed before any renovations are undertaken. Having a home inspection report will be an invaluable reference point for specialists when determining the primary areas that will need to be repaired or replaced. Architects, contractors, engineers, and interior designers are some of the specialists you can contact while rehabilitating a home.
It’s no surprise that renovating a property is one of the most popular exit options in real estate investing, and for good reason. Real estate investors from all walks of life and with all levels of experience have come to appreciate the advantages of real estate rehabs, and there is no reason why you shouldn’t as well. To get started with house repairing, thoroughly outline your objectives and choose which sort of rehab would work best for your particular scenario. Prior to embarking on your first job, familiarize yourself with the procedure and don’t be scared to start small—there is no reason why you can’t be successful in the home-renovation business.
The most successful rehabbers understand how to discover the correct houses, estimate prices effectively, and expand their operations.
You can learn how to flip properties in your area by attending our FREE 1-Day Real Estate Webinar.
How to Renovate a House—Whether You’re Renting, Flipping, or Moving In
It’s no surprise that renovating a property is one of the most popular exit options in real estate investing, and with good reason. Property rehabs have shown to be beneficial to real estate investors of all backgrounds and experience levels, and there is no reason why you shouldn’t be able to reap the same benefits. Start by outlining your objectives and determining which sort of treatment will be most beneficial for your particular scenario before you go to rehab homes. Prior to embarking on your first job, familiarize yourself with the procedure and don’t be scared to start small—there is no reason why you can’t be successful in the home-renovation industry.
Those that are successful in real estate rehab know how to discover the correct buildings, estimate expenses effectively, and expand their operations.
Register for our FREE 1-Day Real Estate Webinar and start learning how to flip properties in your local market!
1. Secure the property
Getting the house secure should be the first order of business. That involves installing new locks throughout the building—as well as paying close attention to any other routes of entry. (Is there an apparent route for a thief or vandal to get access to the property, such as a window, to enter?) To begin, either change the locks yourself or hire a locksmith to do it for you. In some situations, you may be required to board up or block up vulnerable windows and doors until you can replace them with more secure options.
- Contact your utility company as soon as possible.
- Is there no outside lighting?
- You may also think about leaving one or two lights on in the inside to give the impression that someone is present.
- Keeping the outside world from gazing in reduces the likelihood of vandals or burglars entering into your home.
If you’re concerned about theft or vandalism, you might consider notifying the appropriate authorities in your area. Inform them that you have acquired the property and are now in the process of remodeling it.
Inquire if they would be interested in having police patrols on the alert when they are in the neighborhood. They will most likely be delighted that you are remodeling a house in the area and will be pleased to assist you by keeping an eye on items while you are working on it.
2. Create a home remodel game plan
You might consider notifying the police if you are concerned about theft or vandalism. You could inform them that you have acquired a house and are now doing renovations. Consult with them about the possibility of having police patrols on the lookout when they’re in the area. Your neighbors will most likely be delighted that you are remodeling a house in their area, and they will be pleased to assist you by keeping an eye on things for you.
Make a list
Here are some of the items that you should be paying attention to:
- Landscaping and hardscaping, including retaining walls, are also included. Windows, roof, fencing, siding, chimney, retaining walls, and so forth. Exterior lights
- Patios or decks
- And other features. Pool, irrigation, gutters, paint and trim are all options. Floor coverings
- Baseboards and ceiling
- Inside lights
- Interior doors (including knobs and hinges)
- Garage door
- Outside door
- And other miscellaneous items. Outlets and plugs are provided. Fixtures
- Cabinets and countertops in the kitchen
- Kitchen appliances, hardware, and counters
- Vanities and showers in bathrooms
- Smoke and CO2 detectors
- A hot water heater
- And other amenities.
For many households, this list may be excessive. Nonetheless, go through each and every item to ensure that you don’t overlook anything.
Think about layout—and budget
Take some time to sit down and consider your options. At begin, be as generic as possible. Do you want to shift some walls around? Is it time to install a new bath? Is it necessary to update the kitchen? As you plan out your rehab project, it will begin to take shape, which will allow you to more accurately estimate your budget. In the event that you’re planning a significant room redesign, such as a kitchen extension or a master bathroom restoration, develop a list of all of the tasks you’ll need to do and estimate how much each task will cost.
Hopefully, you’ve previously addressed prospective prices; however, if you haven’t, it’s time to contact contractors for estimates on each and every item on your list.
While this may increase your spending, it will also relieve you of a considerable load, which is especially important if you are not a DIY enthusiast.
Having this in place assures that your entire strategy will not be derailed if opening the walls exposes significant problems.
What if I don’t know what work is needed?
If you’re looking at a house and all you can think about is, “Wow, it really needs a lot of work,” it’s time to bring in the professionals to help you. Assuming that you had an inspection performed throughout the closing process, congratulations! If you don’t already have one, get one done right now. That report will serve as an excellent starting point for further discussion. By examining the inspector’s notes, you’ll be able to determine if the roofing is in good condition, whether the ceilings or walls show signs of mildew or moisture, and whether there are any other serious issues that impact the entire property.
In particular, if you intend to demolish any existing walls, they will be indispensable collaborators on your restoration project.
Receive at least two contractor bids for each job on the list we created above. The idea is to strive to construct an apples-to-apples proposal in order to win the contract. It may be difficult to hire a contractor if this is your first time flipping or renovating a home. Continue to call.
A special note on windows and doors
Make sure to take a close look at every single window and door on the property to see how they are currently holding up. If you order replacements, you may have to wait many weeks, if not months, for them to arrive. Getting things taken care of as soon as possible can help you stay on schedule and within budget for your project.
3. Decide on yes, nos, and maybes
At this stage, you must begin to limit the comprehensive bid sheet down to a more manageable size. The budget and the economics of the transaction should be the two most important considerations. Considering your eventual objective, whether it’s to rent, sell, or live in the property yourself, what makes the most sense? What makes the most sense in the context of the neighborhood? And, most crucially, how much money do you have to spare? Go through your to-do list and mark each item with a “no,” “yes,” or “maybe.” After you have completed this exercise, you must add up the sums of the bids for the line items for which you selected “yes” and “maybe,” and then divide the total by two.
Then you’re good to go.
4. Remove debris
Before you begin working on your interiors to-do list—and we understand that you’re antsy because it’s likely to be lengthy—take a moment to consider the following: Take some time to clean up the outside of the house. Begin by clearing away any loose rubbish in the yard and around the home, as well as any tall weeds that have grown. In addition to wanting to satisfy your neighbors, you also want to ensure that your home complies with local building laws. When you are just getting acquainted with a property, the last thing you need is to receive code enforcement fines.
- Don’t start thinking about big landscape alterations until you’ve finished with the inside upgrades.
- Remove or donate outdated cabinetry, furniture, and any other debris that has accumulated within your home so that you have more space to begin your building project.
- Once the garbage has been removed, you will be able to have a clearer idea of the exact destruction that is necessary.
- Don’t just put it all in the front yard, please.
- The dumpster may be dropped out in the morning and picked up that night or the next day.
5. Start the interior
It is advised that you begin any interior repairs first, unless you have some external leaks that need to be dealt with first. One solid argument is that you want to spend your funds on the inside—where people will be living!—before focusing on curb appeal and other outside features. While you could have a general concept of the prices, you never know what you’ll find in a structure until you start digging about in it and seeing what you can find.
This is why it is so vital to set aside additional funds for unexpected expenses. Mold, leaking pipes, and rotten structure may all quickly put a significant hole in a household’s financial resources.
Have a contractor meeting
Before you begin, assemble your contractors and make sure that everyone is on the same page with the project. Examine your plans, introduce everyone, and exchange phone numbers with your colleagues. After all, some of them will be working closely together and closely coordinating various areas of the rehabilitation project in the near future. Having such a meeting will assist you in removing yourself from the “middleman” position. Referred to as: 6 Places to Find (Free!) Home Design Inspiration
6. Begin repair work
The next step in your rehabilitation is to identify the primary systems that require attention. It is important to contact certified electricians, plumbers, HVAC contractors, and other professionals to check and repair these systems as necessary. Once these systems have been repaired and are in full functioning condition, your property may become riddled with cracks and openings. Repairing most major systems necessitates the removal of walls; otherwise, how would you repair a leaking pipe hidden behind the drywall?
Consider getting recommendations for a skilled drywall worker and a mudder before beginning any work; these talents might appear to be deceptively basic at first glance.
It will be necessary for your contractors to understand the intricacies of the task in order to do it. It is not sufficient to just state that the stove will be “around here” or that the bathroom will be “over here.” Inform them of the particular location and manner in which you would like things done. Create a rough sketch of what you want—as close to size as feasible. It does not have to be elaborate; a simple pencil sketch will frequently enough. Prepare a product list for tile, fixtures, carpet, and other materials.
In addition, there will be less mistakes committed along the procedure.
It’s always noticeable how a fresh coat of paint transforms the interior aesthetics—and it’s a must-do for any remodeling, especially if you’re installing or replacing drywall, as it is for any room. Preparing the inside for painting begins after the primary systems have been repaired and sheetrock has been laid or mudded. If you are painting kitchen or bathroom cabinets, make sure they have been well sanded so that a new coat of paint can be applied accurately and quickly. Plastic or painter’s tape should be used to protect anything you don’t want painted.
The time they will save will more than compensate for the added expense.
8. Replace or repair flooring
The cost, durability, and general appearance of the flooring should all be taken into consideration when picking which to place in your house or rental property. New carpeting always improves the appearance of a property, but it does not always hold up well over time. If you want to rent out your property, this may not be the ideal option for you. You may also consider refinishing your existing hardwood floors or even installing long-lasting laminate flooring. Please take note of the existing kitchen and bathroom flooring.
Is there a cracked tile here?
Adding new tile or linoleum to a home always increases its attractiveness, and it will certainly help you justify asking top cash if you’re preparing to sell or rent the home.
Despite the fact that flooring installation is theoretically a do-it-yourself project, hiring a professional is usually a smart choice. Flooring faults are really noticeable.
9. Tackle exterior needs
Once you have done the inside renovations, you should consider the requirements that will be required outdoors. Siding, porches, railings, shutters, screens, garage doors, and gutters are all included in this category. If the exterior of your home is in poor condition, you should consider painting it. If the property is designed for rental purposes, you can, on the other hand, touch up or paint the front of the home just to improve curb appeal—while not exceeding your budget. You’ll also want to be on the lookout for any objects that might endanger a prospective renter (i.e.
- Remember to pay close attention to anything that might become a liability in the future.
- It is possible that hiring a landscaper is a good investment.
- Make modifications if you are able to do so on a budget.
- These products will help you to feel at ease in your new home.
Rehabbing a House From Start to Finish – REIClub
Particularly if you’ve never worked on a home improvement or renovation project before, it’s easy to feel overwhelmed by the scope of the job. This chapter deconstructs the stages required in completing a renovation from beginning to end, removing some of the mystery, and perhaps some of the dread, that has traditionally surrounded a rehabilitation project. I hope it proves to be a valuable tool for you while looking for your next fixer upper.
Step One – Meet With Contractor and Define Job
When I begin a rehab project, the very first thing I do is go through it and inspect it personally. This is the most important step. Afterwards, I scheduled a meeting with my contractor to get his feedback and formalize my approach, which included determining how to handle specific repairs and whether or not we were going to make any modifications to the property’s fundamental layout. Now that I am working only with a single general contractor, my life has been considerably simpler since I just have to deal with a single individual.
As a consequence of my training and experience, I’m getting increasingly competent at finding the most efficient approach to do the task at hand.
Therefore, my contractor is typically successful in executing the tasks exactly as I imagine them to be completed. However, he does provide guidance, and I am always open to recommendations for more efficient or less expensive methods of accomplishing the task at hand.
Step Two – Define Job and Buy Materials
My contractor and I will set together a drawing schedule once we have met and determined the scope of the work to be done. This is often needed by the lender and lists the sequence in which we anticipate to accomplish the work that has been requested by the lender. I prefer to rearrange things in order to retain the cash flow flowing in from the lending institution. My contractor prefers to complete tasks in a manner that makes his life more convenient. We generally decide on a compromise that falls somewhere in the middle.
Step Three – Phase One: Demolition
Experience has taught me that it is best to complete my full “demo” before moving on to the next step. I used to get into my houses and begin to work as soon as I got there. However, this meant that we were always surrounded by rubbish and had to cart trash away, among other things. Now, I just rent a dumpster or two at the start of a project, bring in a team, and begin tearing things up. Remove all of the garbage and rip down the kitchen, bathroom(s), drop ceilings, paneling, and any other obstacles that stand in the way of us doing the work correctly and effectively.
Step Four – Phase Two: Roof, Windows and Siding
It is customary for the remainder of the project to begin on the exterior of the home. It is customary for me to begin with the roof in order to guarantee that the interior of the home remains dry, after which I will complete the windows and siding at the same time. One of the reasons I enjoy finishing the complete outside in a short period of time is that it begins to draw the attention of neighbors and passersby.
Step Five – Phase Three: Plumbing and HVAC
The plumbing system, as well as the heating and air conditioning system, are the next two items on my to-do list. In the past, I’ve had contractors that didn’t complete the plumbing work quickly away, which resulted in a complete nightmare. Following the completion of all sheet rock installation, finishing, and painting throughout the house, they switched on the water only to discover that several pipes had broken within the walls. Today, I ALWAYS have my contractor inspect the plumbing first, including the sewage lines, before doing any work.
My heating and air conditioning crews will be working alongside the plumber to construct a new heating system, which will include a new gas furnace and central air conditioning.
However, I usually start with a clean slate when installing a system.
In many cases, if I am putting central air conditioning in a home that did not previously have it, the electrical system will need to be upgraded in order to support the central air conditioning installation.
Aside from this, which is not usually required, I seldom have to perform any electrical work in my residences.
Step Six – Phase Four: Framing and Subfloors
Once the outside, as well as the HVAC, plumbing, and electrical systems, have been completed, I can begin addressing issues such as rotting wood, taking down walls, and constructing new structures. Of course, if I’m going to remove or construct a wall that contains plumbing and/or power, my staff will have to do it prior to or during Step Five of the process. When I renovate a house, I make an attempt to finish the basement as soon as possible. It adds to the amount of living space available, and for many of my purchasers, the completed basement is the primary reason they choose my property.
Step Seven – Phase Five: Sheet Rock (Drywall)
Following the completion of the primary systems, I begin working on the sheet rock (a.k.a. drywall). If at all feasible, I like to merely skim and fix the walls, but I do a lot of new sheet rock installation in my homes on a regular basis. Hanging and completing the sheet rock is a time-consuming process, but it is essential to transforming an old house into a modern one.
Step Eight – Phase Six: Painting
After all of the sheet rock has been installed, we will begin painting the walls. Priming or a light initial coat of paint will be applied to the walls, and then the sheet rock team will be called in to repair any defects that will not be visible until the paint is applied to the walls. We’ll apply two extra coats of paint to the walls as soon as the defects have been fixed.
Step Nine – Phase Seven: Installing New Kitchens and Baths
After the paint has been applied to the walls, we will lay vinyl flooring in the kitchens and bathrooms before installing all of the new cabinets, toilet, vanity, and other fixtures. We normally take our kitchen measurements to Lowe’s or Home Depot, where they will design the kitchen for us from there. It makes my contractor’s job easier, and we always end up with cabinets that are the appropriate size and fit well.
Step Ten – Phase Eight: Punch Out
Once the kitchens and baths are completed, we will begin to complete the rest of the work. This is referred to by contractors as their “punch out,” and it includes of all the small elements such as outlets, switchplates, and light fixtures that were previously installed. Many times, a homeowner may go around the house with the contractor and prepare a punch list together. My contractor already knows what has to be done because we’ve been working together for so long, and we don’t need to go through this process.
However, it is this portion of the project that will determine whether your makeover is a decent one or an amazing one.
Step Eleven – Phase Nine: Carpeting
This is the very last thing we install since we don’t want workers to damage the new carpet. We normally replace all of the carpeting with new wall-to-wall carpeting.
Step Twelve – Phase Ten – Clean Up and Landscaping
At this time, the house should be done, and we’ll go to work on cleaning it up afterward.
Because you want your properties to stand out from the crowd, it is critical that they be tidy and appear to be worth a million dollars. Whenever I do any landscaping, it is generally the last thing I finish before leaving for the day.
Step Thirteen – Phase Eleven – Marketing
When we reach this phase, the house should be done, and we’ll start working on cleaning it up. To make your residences stand out from the crowd, it is critical that they be clean and appear to be worth millions of dollars. It is generally the last thing I do while I am landscaping, if I am doing any at all.
Step Fourteen – Phase Twelve – Final Repairs Required
Once a buyer has agreed to purchase a home, he or she may choose to hire a home inspector, and their lender will require an appraisal of the property. It is possible that you will be required to make extra repairs as a consequence of the inspection or evaluation. The inspector or appraiser will then re-inspect the property to ensure that all necessary repairs have been completed before providing their final approval of the project.
Steps for Rehabbing a House From Start to Finish
Steve Cook contributed to this article. Particularly if you’ve never worked on a home improvement or renovation project before, it’s easy to feel overwhelmed by the scope of the job. This chapter deconstructs the stages required in completing a renovation from beginning to end, removing some of the mystery, and perhaps some of the dread, that has traditionally surrounded a rehabilitation project. I hope it proves to be a valuable tool for you while looking for your next fixer upper. Step one: Meet with the contractor and define the scope of the work When I begin a rehab project, the very first thing I do is go through it and inspect it personally.
In the following week, I scheduled an appointment for a meeting with my contractor to solicit his views and formalize my approach, which included determining how to handle specific repairs and whether or not we would be making any modifications to the general layout of the property.
He communicates with everyone else and then conveys the outcomes of his interactions with them to me.
Therefore, my contractor is typically successful in executing the tasks exactly as I imagine them to be completed.
Step Two – Define the job and purchase the necessary materials My contractor and I will set together a drawing schedule once we have met and determined the scope of the work to be done.
I prefer to rearrange things in order to retain the cash flow flowing in from the lending institution.
We generally decide on a compromise that falls somewhere in the middle.
Experience has taught me that it is best to complete my full “demo” before moving on to the next step.
However, this meant that we were always surrounded by rubbish and had to cart trash away, among other things.
Remove all of the garbage and rip down the kitchen, bathroom(s), drop ceilings, paneling, and any other obstacles that stand in the way of us doing the work correctly and effectively.
It is customary for the remainder of the project to begin on the exterior of the home.
One of the reasons I enjoy finishing the complete outside in a short period of time is that it begins to draw the attention of neighbors and passersby.
In the past, I’ve had contractors that didn’t complete the plumbing work quickly away, which resulted in a complete nightmare.
Today, I ALWAYS have my contractor inspect the plumbing first, including the sewage lines, before doing any work.
My heating and air conditioning crews will be working alongside the plumber to construct a new heating system, which will include a new gas furnace and central air conditioning.
However, I usually start with a clean slate when installing a system.
In many cases, if I am putting central air conditioning in a home that did not previously have it, the electrical system will need to be upgraded in order to support the central air conditioning installation.
In this step, we will discuss Phase Four: Framing and Subfloors.
Of course, if I’m going to remove or construct a wall that contains plumbing and/or power, my staff will have to do it prior to or during Step Five of the process.
It adds to the amount of living space available, and for many of my purchasers, the completed basement is the primary reason they choose my property.
Hanging and completing the sheet rock is a time-consuming process, but it is essential to transforming an old house into a modern one.
Priming or a light initial coat of paint will be applied to the walls, and then the sheet rock team will be called in to repair any defects that will not be visible until the paint is applied to the walls.
The installation of new kitchens and bathrooms is the ninth step of Phase Seven.
We normally take our kitchen measurements to Lowe’s or Home Depot, where they will design the kitchen for us from there.
Punctuation in Step Ten – Phase Eight: Once the kitchens and baths are completed, we will begin to complete the rest of the work.
Many times, a homeowner may go around the house with the contractor and prepare a punch list together.
Because it takes so long to finish everything on the to-do list, it may appear that the punch out stage is the most difficult portion of the entire restoration process.
This is the very last item we install since we don’t want employees to spoil the new carpet.
Clean-up and landscaping are included in Step Twelve of Phase Ten.
Because you want your properties to stand out from the crowd, it is critical that they be tidy and appear to be worth a million dollars.
I begin promoting the home as soon as it is completed, which is Step Thirteen of Phase Eleven.
The last repairs are required in Step Fourteen – Phase Twelve.
It is possible that you will be required to make extra repairs as a consequence of the inspection or evaluation.
Since 1998, Steve Cook has been a successful real estate investor in the Baltimore area, having flipped hundreds of properties.
When it comes to flipping real estate, Steve Cook is devoted to assisting others in achieving success by understanding and actively executing his time-tested, step-by-step strategy.
Licensed under Creative Commons Attribution 4.0 International License With the permission of the author, this work has been published.
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