Turning a distressed property into a beautiful home improves housing communities. When an abandoned or deteriorated homes keep sitting on the neighborhood, it reduces the selling price of nearby homes. However, when the same home gets put on the market with a new makeover, new systems, and modern facilities; it creates an increase in price for other properties in the area.
As for investors, home remodeling could be a financially rewarding job, if done properly. The success of this project requires that you complete it within the established timeline and budget. Certain things need to be done at the right time. That’s why it is important to have a project management setup that outlines what needs to be done, when and for how much. Here are a few tips for you:
Read: 5 Principles of Home Rehabbing
Survey the Site
Whether it is a flip or a rehab, you need to investigate the property. You have probably finished this task before you bought the property. Now it is time to make detailed notes.
What is the condition of the foundation? Will you need to repair the foundation? Materials such as wood, concrete should be water-proofed to avoid damage from rain, flood and other sorts of water problems. At this stage, you also need to check mold-related problems, termite issues, and address septic problems.
Once you know the tasks, you should apply for the building permits. Any significant project will need a license. Get it before you start the job. Doing so ensures that you continue your work without any delay.
On the next step, you’ll need to take care of exterior & interior renovations.
Also Read: Do’s and Dont’s of Home Rehabbing & Flipping
Assemble Your Team
Finding a general contractor remains one of your most important jobs. Pro contractors are mostly booked in advance so make sure to ask your colleagues for recommendations. Set up a meeting with your contractor. Let the team walk in the house so that you can create realistic goals for your rehab project.
What is Your Contingency Plan?
Remodeling projects don’t always go as planned. Every plan A should have a plan B. Your contingency plan should consider delays, weather issues, and money problems. What’ll happen if your plumber or carpenter is sick and cannot return to work for three weeks? What if you cannot continue the job for a few days because of poor weather conditions?
In case of such delays, how will you ensure that you complete the project at the right time?
Also, calculate the holding costs, commissions and make room for unexpected expenses. Keep a record of money expenditure. Doing so will help you stay on budget. Also, keeping that record helps with future projects.
Inspections are a Part of the Construction Process
It is best to inspect the property after one phase is complete. Depending on the inspection result, you might want to revisit a section and do the necessary work. Considering this in your timeline is essential.
Do the Things in the Right Order
Whether it is a flip or a rehab, you must do things in a particular fashion. The functionality of the home comes first. Your home should be functional, and it should serve the basic needs before we tackle renovations and cosmetic makeover. When needed, don’t cut corners and replace the essential systems including the furnace, boiler, electrical panels, water pipes, etc. Here is an overview:
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There are a lot more stages involved in the process. It depends on how extensive is your rehab project, but the basic plan remains the same. Feel free to contact us with any questions or comments.
