When getting into real estate investing, renovating and rehabbing properties is one of the best ways to make money. Today there are hundreds of thousands of bank owned properties, distressed properties and all around good deals in almost every corner of the U.S. By rehabbing a home properly, not only will you keep your budget in line, and make a fine return on investment, you’ll also find that you won’t be stressed out along the way. Rehabbing is the #1 way new investors get into the market. It’s fairly simple. Find a property, usually a bank owned property at a discounted price. These alomost always need alot of repairs. Fix it up. Then sell it. The devil’s in the details when it comes to rehabbing successfully.
Listed below are six basic steps that most successful real estate rehabbers follow:
Part 1: Before You Start Working
Order a dumpster: The property will surely need some rooms “demo-ed” and you’ll need a place to throw stuff away.
Make sure that you change all the locks before you even start work. If possible, add a lock box to the front door.
Transfer all of the utilities to your name and make sure that they are active the day you close on the property.
Be sure to set your priorities straight before starting the work. This means that you should get your permits and set up contractor’s appointments if heavy work such as foundation repair needs to be done.
Be sure to have a professional plumber walk through the property to ensure all of the plumbing is in tact before the water is turned on.
Starft “demo-ing” (demolishing) the house. Begin tearing out old cabinates, countertops, fixtures, tile and flooring like carpet.
Part 2: Roughing The House Out
Take a look at the plumbing and start repairing any necessary areas that need repairing.
If any parts of the flooring or subfloors need to be replaced, it’s important that this gets fixed ASAP.
Be sure to check the exterior doors and make sure that they are up to code.
If you’re going to paint the exterior and interior, be prepared to gather the necessary supplies as well as prep the area.
Take a good glance at the roof and see if it’s in great shape. If not, bring in a professional roofing expert to access the situation. Tear off the roof and replace as needed. The last thing you’ll want is for the interior to get ruined with rain.
Part 3: The Mechanical Process
If there is a fireplace inside of the home, make sure that a chimney sweep is done.
Bring in a HVAC tech to clean up the vents as well as clean inside the heating and air conditioning unit.
Ensure that all of the plumbing as well as the electrical work is done according to code.
Inspect the driveways and walkways of the home and replace any parts that are either uneven or cracked.
Check the septic system and if it’s in need of repair, find out who’s going to be responsible for the cost.
Measuer and order cabinets and countertops. Buy fixtures.
Part 4: Unfinished Parts and Install
Start repairing and replacing the drywall throughout the home. Mud, tape and sand.
Analyze the garage door. If it needs to be replaced, replace it.
Take a good look at the gutters and downspouts. Replace any that look beat up.
Analyze the flooring throughout the home. It’s best to replace any bad flooring with wood.
Replace any cabinets that need work.
Install everything inside the property including: Toilets, vanities, cabinets, bath tubs, tile flooring, countertops, kitchen flooring
Measuer and order carpet or hire someone to do it for you.
Part 5: Finishing Touches
Start painting the interior as well as the garage.
Add trim, crown molding and chair railings.
Install kitchen appliances.
Analyze the plumbing throughout the home again and make sure there are no leaks.
Install new lights, a thermostat and smoke detectors.
Part 6: Finalizing Details
Add appeal to the property by adding small things such as a towel bar, doorknobs and even address house numbers.
If carpet needs to be installed, consider adding a neutral color.
Finish up the landscaping in the yard.
Do a thorough cleaning throughout the home.
Finally always always stage the property to make it looked lived in. Add kitchen tables and chairs, living room couches and end tables. Add pictures on the walls and bathroom towels. Add an area rug and welcome mat at a minimum.
By following these 6 main steps when rehabbing a home, you will find that as long as you have a positive mindset, buy the property at the right price and you keep your in line with your budget there is a lot of money to be made in renovating houses. Bank owned properties are the best source for rehabs. Get more free info on real estate investing by subscribing to our newsletter and get a free digital ebook in the upper right of this page.