So you’ve bought an old house, and you’re planning on refurbishing it to maybe sell again. How much time and money you’ll be spending on it depends on its condition. Some used homes are so derelict that it might take a major overhaul. Others come in gently used conditions requiring nothing more than a coat of paint.
Once you get beyond the condition of the property, there’s the matter of getting started. You’ve seen the reality shows where construction crews are ready roll at a moment’s notice. Unfortunately, you’re rehab project isn’t backed by reality TV producers. As it turns out, half the hard work is just from organizing your home rehabilitation. Here’s a few tips to help you clear this phase, and get to the grunt work.
Buying and flipping those San Diego or Milwaukee homes for sale is never an individual operation. You could get away with taking care of exteriors by yourself, but good luck with interiors like flooring, plumbing, electrical, and others. Let’s not forget about the bureaucratic side of house rehab, too.
Before anything is done with the property, you need to build a team. Prior to purchase, get an attorney who can help you secure lenders and guide you through the resale process. Use your real estate agent to connect you with viable insurance agent; the more seasoned the agent, the better off you are.
Another valuable teammate is the home inspector. A thorough home inspection is necessary for identifying problem areas that’ll decrease value. It’s also necessary to avoid building code violations.
Residential building permits are valuable proof that a home’s blemishes are under competent control. Owners need to have the right documentation in place before going ahead with structural renovations. Interior cosmetic changes–carpeting, hardwood flooring, painting, etc.– are exempt from the regulations. A professional home inspector needs to illustrate for officials your rehabilitated home.
Maintaining a good relationship with your contractors is vital to your project. The help you bring on becomes, essentially, your employees. Time and consideration must be spent on selecting general contractors you find trustworthy.
Start the vetting process by getting at least three references from the contractors’ previous clients. Question them about how they would go about planning and executing each of the needed tasks. Each answer they give can provide some clue as to their work ethic. Once you’ve found the right candidate, sit down with them and discuss an agreeable payment schedule.
The costs of home rehab vary from house to house. As you go through the motions of setting up, you should itemize every component of the process. Ask successful house flippers you know, and they’ll suggest the same.
After hearing from the home inspector, do a walkthrough with a contractor. Compare and contrast the estimates for both to determine a fair price. Don’t forget to factor in closing costs, as well. Ownership costs are often overlooked by flippers, so factor in mortgages, taxes, utilities, and insurance. Do and this and you’ll achieve your financial goals.