Does real estate rehab appeal to the adventurous handyman in you? Rehabilitation refers to the rehabilitation of a building. A person who does rehabilitation is called a rehabilitator.
Rehabilitation can be very profitable. It can also be fun and rewarding on many levels. However, rehabilitation is not easy and requires knowledge and experience to be truly successful.
Rehabilitation tips:
One of the most important parts of rehab is learning how to determine what repairs a home needs and establishing the costs of renovations.
The plumbing and electrical systems, the roof, and the structure/foundation are areas with the potential for very expensive repairs and will require permits for rehabilitation.
- Plumbing – Open cabinets under bathroom and kitchen sinks. Are there signs of leaks? Warped floor or discolored areas? Check around showers, toilets, and bathtubs. If the house has a foundation, inspect the area directly below all sinks, bathtubs, and toilets.
- Electric– Does the house have a fuse box or a switch box? Do the wall or outlets have two or three prongs? If there are exposed electrical wires, are they covered with fabric or covering?
- Roofing– Is there a tile missing? What type are the shingles and do they meet current building codes? Inspect fascia, soffit and gutters for wood rot or termite damage. Inside, look at the ceiling (or in the attic) for water stains.
- Foundation and structure– Walk around the outside of the house and look for cracks or holes in the foundation. If you suspect structural or foundation problems, hire a specialized inspector.
The following areas to consider are often referred to as “cosmetic” repairs.
- Does the house need to be repainted inside and/or outside? Select neutral colors for both. It’s worth the expense of a fresh coat of paint in an instant eye-catcher for any potential buyer. Inside, paint the ceilings the same color as the walls, but in a slightly lighter shade; this makes the room appear larger.
- Cut overgrown grass or weeds. Landscaping is essential to curb appeal. If the house looks like a jungle from the street, potential buyers may never stop to look inside.
- Do the bathrooms and kitchen just need a fresh coat of paint, or do they need a complete renovation? A beautiful kitchen is very important: women love beautiful kitchens and statistics indicate that women are the main decision makers in the majority of real estate purchases.
- Does the carpet need to be replaced or just a good cleaning? If there is hardwood under the floor, it might be worth removing the carpet and refinish the hardwood.
- Also look at the windows, doors, light fixtures, furnace, and water heater. They may need to be replaced for aesthetics, efficiency, safety, or compliance with local codes.
Many rehabbers use an itemized, itemized checklist when inspecting a prospective property under rehab. This eliminates the possibility of overlooking a potentially expensive repair and makes it easier to establish the full cost of rehabilitating a property.
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