Rehabbing a property is an efficient way to turn a dilapidated building into something wondrous. Yet, there’s no doubt that embarking on this journey can be pretty intimidating. This is doubly true for those that have never rehabbed a building before – either personal or business.
As with any significant project, it is beneficial to do some research before diving in. There are certain things that all rehabbers should know before they start, including some basic information and an understanding of the process.
The Pros and Cons of Rehabbing
First, one must consider whether or not rehabbing is right for them. Some pros and cons come along with this process, and it is helpful to understand both sides before making a decision.
In general, the price of a property in need of work is significantly lower. However, this can come with hidden costs, and it is challenging to estimate how much the repairs will cost accurately. Along with hidden costs is the concern of time – rehabbing a house does not happen overnight, so one must have patience and fortitude.
Finding a Property
Some people go into the process of looking for a property to rehab. Others fall in love with the property and accept the need for renovation. For the former, it is essential to understand what sort of property you’re looking for.
Consider location, condition (the worse the condition, the more likely surprises), layout, and more. All of these will impact the time and cost of repairing the property. It is imperative to consider things that cannot be altered, such as the property size and location.
Hiring the Right Crew
When it comes time to hire a contractor, it may be tempting to go with the cheapest quote. Remember, in the world of construction, one always gets what they pay for. Research different contractors and even ask for personal recommendations from friends and family.
This logic should be used for every contractor on site, including electricians and plumbers. It will help prevent further complications down the road.
Know When to Stop
The idea of renovating can be fun and exciting – but it’s critical to know when to stop. For example, if you’re looking to flip a house, there’s a maximum value one can hope to get out of the property. Part of this value is based on properties of the same size in the area. This will help drive the price for your home, regardless of how much work was put into it.