Rehabbing a Real Estate Investment Deal from Start to Finish

You can be easily intimidated by the magnitude of rehabbing houses, especially if you have never engaged in one before. The following are the steps involved in carrying out a renovation from the start to finish. It will remove some of the mystery and fear surrounding the renovation of a real estate investment deal.

Step #1: Meet the contractor and define the job

When beginning a rehab, the first real estate tip is to walk through and assess the project yourself. Next, set up a meeting with your contractor and get his ideas and finalize your strategy, including how to deal with particular repairs and whether to make changes to the property layout.

Step #2: Define the job and buy materials

Once you meet the contractor and establish the work that needs to be done, work together to create a draw schedule. This is normally required by the lender and outlines the order in which you intend to complete the required work.

Step #3: Demolition

It is advisable to do your entire demolition first. If you get into the home and start the demolition immediately, it means you will be constantly working around trash. Get a dumpster at the beginning of the job and bring in a crew to rip everything out. Tear out the bath(s), kitchen, paneling, flooring, drop ceilings and anything else that may get in the way of finishing the job efficiently and properly.

Step #4: Roof, Siding and Windows

The rest of the work usually starts on the outside of the home. Begin with the roof so as to ensure that the inside of the home remains dry. It is also advisable to have the siding and windows done concurrently. One reason why you should complete the whole exterior rather fast is that it begins to attract attention from neighbors and people driving by.

Step #5: Plumbing and HVAC

The next items on your list should be the air conditioning and heating system and the plumbing. Not doing the plumbing right away can lead to disaster. Always have your contractor look at the plumbing first, as well as the sewer lines.

It is vital to have a functioning heating system in the house upfront. This enables most of the interior work, especially the painting and finishing of the sheet rock to be done. As the plumber is working, have an HVAC crew install a heating system consisting of a central air conditioning and new gas furnace. However, if the current system is fairly new, there might be no need to install a new one.

Step #6: Framing and Subfloors

Once the HVAC, electrical systems and plumbing are done, you can start addressing areas such as tearing down walls and putting up new ones, and rotten wood. If you are going to build or remove a wall containing electric and/or plumbing, then your crew has to do it during or before step 5. Make an effort to complete the basement of the home since it creates an additional living space. Many buyers buy a home because of a finished basement.

Step #7: Sheet Rock (Drywall)

Once you have finished all the major systems, start doing a sheet rock (drywall). If possible, you could just have the walls skimmed and patched. Hanging and completing the sheetrock could take a while, but it is vital in making an old house look as good as new.

Step #8: Painting

Once all the sheet rock is complete, have the walls painted. First, put a light coat on the walls and then get the sheet rock crew to fix any blemishes, which might not be seen until the walls have been painted. As soon as the blemishes are repaired, apply two more coats of paint.

Step #9: Installing new baths and kitchens

Once the walls have been painted, get your vinyl floors in the baths and kitchens before installing the new commode, cabinets, vanity etc. You can get professionals to design your kitchen and baths so as to make your contractor’s life easier, as well as get the right cabinet sizes.

Step #10: Punch out

Once the baths and kitchens are installed, start wrapping everything up. This is usually referred to as a ‘punch out’, and consists of minor details such as switch plates, light fixtures and outlets. Often, a homeowner will work with the contractor to create a punch list.

Step #11: Carpeting

Since you wouldn’t want your new carpet to be ruined, this is the last thing you should install.

Step #12: Clean up and landscaping

Once your home is finished, embark on a thorough clean up to make your home look like a million dollars. Professional landscaping is important so as to give a good first impression to potential buyers.

Step #13: Marketing

Once the home is finished, start marketing immediately. If the home is in a prime location, you could start marketing prior to completion. However, it is always better to allow people to see the home when the entire job is done.

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