renovation checklist

[Woody]

Hello all. I am new to the RE investing world. I am looking for a Checklist that I can use on each property that I buy on an initial walk through. Does anyone have a recommendation on where I might find something of this nature. it seems to me that this would be tremedously helpful when evaluating what my upcoming cost would be. Another question is, without being a contractor, I have only a partial idea of what my estimated cost might be when I am looking over a property. Any Tips on that?
Thanks for the help in advance.

[ZNICK]

Here's a simple form we use. (attached)

You'll have to find out the costs for your area, and edit the form. Keep in mind that these are general, you'll have to re-assess depending on other factors.

Once you have done a few rehabs you'll be able to walk through a house and estimate within a few thousand what the repairs will be.

Keep in mind that it's not an exact science. No matter how experienced you'll get, you'll never be perfect and it will always vary. Also, always plan on finding additional "surprises" you didn't originally see.

Remember that we make our money when we buy. You need to buy at a price that even if your work estimate is WAY off you'll still make money. If a $10k surprise will eat up your profits, even if a $20k or more error will eat up your profits, you might want to re-consider.

Sometimes the best deals are the ones you walk away from.

Z

[Dan Auito]

You will find it hard to miss many details that could cost you if you check off each potential area of concern on this free and comprehensive Home inspection checklist. http://www.inspectamerica.com/Home_Inspection_Library/Home_Inspection_Checklists/home_inspection_checklists.htmlWelcome to the Family.

[srj19]

I just wrapped up my first non-owner occ rehab (it's quite a different experience when you're not living there too.)

My biggest mistage: Not tracking my costs weekly or biweekly at a minimum. If yo're working off charge cards and not using actual cash, it's REALLY easy to not have a handle on your accumulated costs. As a side note seeing the big picture and the cost per job is tougher when you do the work yourself. If you hire Bob builder to do a kitchen remodel, you most likely have one figure for that job, or at least on invoice with subtotals.

Tied for biggest mistake: Chasing away my first buyer over 1K. I had an offer in the first four days!!!! And I went back to them one time too many to get that last 1K and they decided to take their ball and go home. I did it partly because my partner in the deal thought four days on the market must mean we were under priced, and we had just realized how much we spent, and how little we were going to make. Three months later we got the second offer and lets's just say it wan't as good as the first.


Second biggest error: Not having a clear, planed scope of work (or making changes midway through. This results in doing things out of order (painting is a pain when the carpet is already in and you forgot to touch up that wall, etc)


Pain in the butt error: Getting lazy, leaving my tools at the property, yet out of sight and locked in the garage. Some cr*ckhead kicked in a glass block window on the secondfloor, and my tools in the locked garage went bye bye. A mixed blessing was that they didn't vandalize anything and didn't try and cut any of the small amount of copper that was part of the pluming system. A plumbing kit was even in the house with copper pipe cutters (which they took) So who was dumber there, me for leaving it there, or them for not using them?

So far it sounds like a big crying shame huh? Anyway I'm glad to be through it, and far richer in experience than I am in cash.


Surprises in work items:
Having to repipe the gas line. I've since learned that in my area if you touch anything related to gas, you'll have to pass a pressure test that subject the old black pipe to 30lb pressure for 24 hr (when normal is something like 1/5 of that) I've heard that some utility companies requre that as well if gas or water has been off for a long time. Most houses out there are not perfect especially after 30+ years. My Dad just pressure tested a house built in the early 70s and the pipe wouldn't pass the test. I think the cost to replace with new copper flexible was about $1500. I'll add 1000-1500 to my new furnace price in the future for this.

When our roofer removed the shingles they found that there were actually 3 layers of shingles. To make things worse, When they got to the cedar shakes the gaps in the old decking were too great and needed to be redecked per code (about $1900) So look very closely at the layers of shingles. I mean get on a ladder and look. We found that prior contractors/owners has trimmed back a few inches of shingles overlaying the edge of the roof and added a trim board flush with the edge of the house, enabling them to add a third layers and look somewhat normal on first look. I think I have the same thing going on at my own residence.

I don't know if I saw anyone mention furnace prices, 90%+ efficiancy should be about $2500


My word of advice regarding any problem properties that will affect your resale is get on them with the city NOW. It can take months of followup with them to bring pressure on an owner whose house is the problem property of the neighborhood.

One last word of advice (I just can't stop editing this post). When dealing with a contractor who tells you that the code requires X, get the city in there to make the call, you at least have a chance then of not having to do the work. If you tell him to go ahead and do it prior to the city coming, there's a 100% chance you'll be paying for that repair.



Scott

[Debbie]

Great post for a newcomer Scott!

Welcome to the Magic Bullets Fambly!:SM128:

[Bluestarhomes]

"Second biggest error: Not having a clear, planed scope of work (or making changes midway through. This results in doing things out of order (painting is a pain when the carpet is already in and you forgot to touch up that wall, etc)"

Um, been there, done that. I think that one really comes with experience. Early on I actually had the carpet put in before I had even started painting. Thanks for the info Scott!