Making Rehabs Simple to Calculate

The most expensive and unforgiving process for real estate can often be the process of fixing up those troublesome issues with those “as-is” purchases. Even when it seems you know the challenges going in, there can be troublesome challenges that arise since you can’t really get behind the walls until you own the place. If you are planning to buy something for a great value and do a full internal rebuild the process becomes more work to plan but a bit simpler as surprises go since it’s all coming out. Below are a few tricks to help you take the guesswork out of the rehab process.

A Quick Second Look

Most often my typical process when I can get into a property is to walk through with a video camera where I used use my old Flip Video HD with some Amazon rechargeable batteries since the original ones that came with it have long since ran their lifespan and got recycled. Since then, I have upgraded to better video quality with this new option that also allows me to record my tutorials on home improvement projects (KOT Camcorder w/ Remote Control). I do this so I don’t have to rely on my short term memory to grab all the details that I did not physically write down. This also gives me the benefit of a secondary virtual tour of the property down the road as needed.

Know Your Neighborhood

When planning out what level of upgrades to complete, take the time to look around at the caliber of upgrades other homes in the area are doing and what return they are getting on their money. When checking the Zillow sold listings, many will still have the images from sale on the platform so you can get a look at what things look like and what prices things are going for based on those styles and amenities. "Over doing it" for your area can cost you dearly by spending too much but making things too simplistic or basic can really cause your sale or rental vacancy to hang around much longer than you want.

Ask lots of questions

Asking about the big tickets items is often a logical aspect but anytime something raises a question in your mind, don’t hesitate to ask. This helps build your knowledge as well as lets those you are working with see that you are taking this process seriously. The questions you have can also be formulated into a request for the seller’s with aspects like age of major appliances and systems. At times, you will find an organized seller that will have things in order, but in my experience a seller’s disclosure tends to come with a lot of holes and can be less than thorough.

Lean on an Expert

If you are not at the point of being an expert in knowing the basic things to look for, seek out someone willing to partner with you for the process. This can be a handyman or contractor you use on your own home or perhaps a deal you set up with the contractor you are looking to use. This can allow the contractor to give you really great quotes on the work to be done as an additional benefit of you trying to guess the rates and details that a local contractor would be familiar with. Your realtor will by default have some basic “know-how” on the types of work needed as well as a list of contacts for getting almost every type of work completed on a home.

Make A List and Check it Twice

Whether it’s on your first walk through or by double checking what you remembered to write down after the initial visit to the property, make sure you make a list by category in order to have a great framework to make your estimates. Some great categories are: Outside, HVAC, Plumbing, Electrical, Cosmetic, Remediation (Termite/Mold), General Construction (Insulation, Framing, Cabinetry), etc. Your categories can vary depending on your experience and the types of properties you are investing in.

Repetition is Your Friend

Like my piano teacher used to tell me, repetition will make things seem like second nature. The more you do this process, even if it is just practicing with properties you might be generally researching from an auction, straight from the MLS or through an investment platform, the better you will get at both seeing issues and making estimates on how much to update to your desired final outcome.