Posted by David Krulac on October 18, 2004 at 13:27:28:
so that it doesn’t leak into house and ruin drywall/plaster.
How do you know what to fix first on a REHAB? - Posted by Robert
Posted by Robert on October 18, 2004 at 12:07:09:
How do you know where to start on rehabbing the house in order to get a huge profit on the house? Do you get an inspection and work off that, or is their certain things that you start off with? Thanks
Re: How do you know what to fix first on a REHAB? - Posted by GL(ON)
Posted by GL(ON) on October 18, 2004 at 17:00:57:
Heres what you do.
- Emergency repairs. The roof leaks, the electric is shut off because of faulty wiring, these you have to fix first.
2)Outside appearance. Cut the grass, trim the bushes, paint the trim. Do the outside first. This does several things a) the neighbors start talking about what a great guy you are b)anyone who is thinking of making you an offer gets a good impression, so does the loan officer of the bank when he HAPPENS to drive by on Sunday afternoon, likewise your insurance agent etc. c) The grass has a chance to grow in the bare spots you reseeded and the bushes you cut back have a chance to fill out.Before you get everything done and put it up for sale.
3)Things that will be covered by other things. Do the plumbing wiring and insulating before you put the drywall over everything. Do the drywall before you paint. Finish the painting before you schedule the new carpet installation. Basic yes, but sometimes we forget.
Get the bathroom and kitchen work going, they seem to take the time and you have to wait for supplies so get started early. Then if you are stymied you can go paint the bedrooms or something.
Somehow I get the feeling this isnt really what you meant.
If you meant what I think you might have meant… here is how you know what to do.
Everyone (typical buyer) would like to buy a brand new, perfect house. The closer you come to this ideal the better. However this may be impractical. But you can always make the place clean, in good repair,with new paint and carpet.
Whether you can afford to do all this, and sell the place at the going rate and still make a profit remains to be seen. Nobody OWES you a profit. If the house next door is basically as good, and is for sale for $159,000 and you tell the buyer I have to get AT LEAST $225000 to break even what do you think he will say. Not from me you dont LOL would be a polite way of putting it.
So before you begin you need an idea of what the place needs to put it in good saleable shape, comparable to the houses you will be selling against. Then you have to know what it will cost. Deduct that from the price you will pay and deduct another 30% for your profit. Even then you will wind up doing some jobs for nothing because it alway costs more than you expect.
And dont forget carrying costs for the time you own the place, this can run hundreds or thousands per month for mortgage payments, insurance, taxes etc.
Re: How do you know what to fix first on a REHAB? - Posted by eric
Posted by eric on October 18, 2004 at 16:35:31:
This may sound obvious but it is what is broke. If it is not broken don’t fix it.
Dave is 100% right, if the roof is bad then fix it, or anything else wont matter.
Also Kitchens and bathrooms sell houses. The cleaner they are the faster they will sell.