You have the itch. You watched so many flipping (literally) shows on HGTV that you are ready to find the right rehab project. Whether its an addition on your home or an old home you are buying at an auction. There are many things you should look for before diving into the next dream rehab home. Our hope is that we help guide you on your way in finding the home the both suites you and your budget. Nothing is worse than finding a good rehab project and then getting mired in red tape and contractor bills.
Inspect. Inspect. Inspect.
Should go without saying that the old adage, “look before you leap” plays heavily in the flipping/rehab market. We suggest having a good certified inspector go through the home/project to make sure you are not missing anything. Because if you do miss something it could mean a delayed move-in date or a very hard sell. Also, depending on how you plan to finance the project, a good inspection could save you some money in fees/insurance. You will want to have the inspector look at the following areas closely:
- Structure – Is there any existing damage? Anything odd or unique?
- Membrane – Roof, cladding – Will it keep water out and heat in?
- Foundation – Is the basement dry? Does it have cracks?
- Electrical – Enough power, and properly wired. You don’t want to get caught with old tech and costly upgrades if possible.
- Plumbing – Leaks and pressure.
- Heating – Primarily this is the age and type of furnace.
- Doors and Windows – These cost more than you think, so get an estimate before buying.
Determining What is a “Worth It” Repair vs. a Bad Repair
There will be items on your “fix it” list that are going to be worth fixing and those that are not worth fixing. If you are rehabbing a home to flip back onto the market, you are going to need to use your finances wisely and probably start with the fixes that will help the “Curb Appeal” of your home. This could include landscaping, gutters, front doors etc. Typically these repairs add quick value to your home. Then there are the kinds of repairs that are pretty costly and don’t add immediate value to the home. These can be fixing the sewer line or updating electrical wiring and systems. These kinds of repairs don’t add obvious value to the home, but they do lower it’s value if not addressed.
What is Your Deadline?
This is important in determining how big of a project to take on. If this is a home you need to move into relatively quickly, perhaps you should find a “fixer-upper” instead of a rehab project. Rehab homes tend to be longer projects that will more than likely need slightly larger financing. “Fixer uppers” are homes or dwellings that the resident can live in the home while working on the project. So make sure that your intentions are on point with your timeline.
Whatever your intentions, make sure you have these three main factors in mind. There are many more factors and details to flush prior to your project, but your contractor and architect should be handling those details. You should take a look at our services page to see what details we cover and how we can take some of the burden off of your shoulders.