Whether you’re a real estate investor or looking for a new home, rehabbing a house can be a great investment opportunity. House rehabs can be expensive, but proper planning and execution will keep budgets and timelines in check. Approaching it with a systematic process will help you be more prepared in case things don’t go exactly to plan. Here are a few tips to beginners for the rehabilitation of a house.
Home Inspection
Inspect the entire property and make a list of what is in good condition and what needs the most work. If you have the means, be sure to have a professional inspector walk with you to point things out you may not know to look for. A typical inspection includes:
- Heating/Cooling Systems
- Plumbing/Electrical Systems
- Roof/Attic
- Walls
- Ceilings
- Floors
- Windows
- Exterior/Siding
- Foundation/Basement
Once you have done a thorough inspection and made a list, create a checklist of what needs to be rehabilitated. Learn more about what to expect during a home inspection here.
Budget
Create an itemized budget for each repair, and include a buffer for potential unanticipated problems. If the cost of your repairs goes beyond your budget, you will have to prioritize your repair list and possibly hold off on some of the items until a later time.
If you are looking to sell your property, consider how much you may be able to sell the property for in comparison to what you are putting into repairs.
Contractor
Working with an experienced contractor will help make rehabbing a house go smoothly and to code. Take your time when searching for your contractor and be sure to put together questions to ask before hiring them for the project. Questions should include:
- What experience do they have?
- Do they have their own equipment?
- What type of licensing do they have?
- Will they be using subcontractors?
- What referrals do they have?
Before beginning any work, contractors should submit a formal bid for the cost of the work, and you can do a walk-through of the property together to go over your budget and repair list. Making sure everyone is on the same page is important to keep the process smooth.
Permits
Be sure to contact your city’s zoning and building department to determine what permits you need in order to prevent building violations. Permits will vary based on what kind of work you’re doing. Some contractors will take care of securing permits for their work, so make sure you discuss who will be in charge of getting any necessary permits.
When you’re in the process of rehabilitating a home, things don’t always go entirely as planned. But if you go into it with a plan, a budget, and a positive attitude you can successfully rehabilitate a home for your own personal use or to sell for a profit!
We love talking homes! If you have a question about our essential rehab tips contact your local RE/MAX Results office.