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Rehabbing_a_House
| Rehabbing a House
It is easy to be intimidated by the size of a rehab project,
particularly if you’ve never tackled one before. This chapter
breaks down the steps involved in completing a renovation from
start to finish and removes some of the mystery, and hopefully
some of the fear, surrounding a renovation. I hope you find it a
useful tool when eyeing your next fixer upper.
Step One - Meet With Contractor and Define Job
When starting a rehab, the very first thing that I do is walk
through and evaluate the project myself. Then I set up a meeting
with my contractor to get his input and finalize my strategy
including how to handle certain repairs and whether or not we’re
going to make any changes to the basic layout of the property.
Now that I work exclusively with one general contractor, my life
is much easier since I only have to meet one person. He contacts
everyone else and then relays the results of his conversations
with them to me. As a result of my experience, I’m becoming
fairly adept at determining the best way to do the work.
Therefore, my contractor usually winds up completing the
projects in the way that I envision. However, he does offer
advice and I’m always open to suggestions as to better or
cheaper ways to get the job done.
Step Two - Define Job and Buy Materials
Once we meet and determine the work we are going to do, my
contractor and I put together a draw schedule. This is usually
required by the lender and lists the order in which we intend to
complete the work required. I like to shift things around to
keep the cash flow coming from the lender. My contractor likes
to do things in an order that makes his life easier. We usually
settle on something in between.
Step Three - Phase One: Demolition
Through experience, I have finally learned to do my entire
“demo” first. I used to get into my homes and start the jobs
immediately. However, this meant we were constantly working
around trash, having to haul trash away, etc. Now, I just get a
dumpster or two at the very beginning of a job, bring in a crew,
and begin to rip everything out. We clean out all the trash and
tear out the kitchen, bath(s), drop ceilings, paneling,
flooring, and anything else that might get in our way of
completing the job properly and efficiently.
Step Four - Phase Two: Roof, Windows and Siding
The rest of the job typically begins on the exterior of the
home. We start with the roof in order to ensure that the inside
of the house stays dry, and usually, I’ll have the windows and
siding done at the same time. One reason I like completing the
entire exterior rather quickly is that it starts to attract
attention from the neighbors and people who drive by.
Step Five - Phase Three: Plumbing and HVAC
The next two items on my list are the plumbing and the heating
and air conditioning system. In the past, I had contractors who
didn’t do the plumbing right away and it only led to disaster.
After they hung, finished and painted all of the sheet rock in
the home, they turned on the water only to find that there were
pipes burst in the walls. Today, I ALWAYS make my contractor
check out the plumbing first, including the sewer lines. It is
important to have a working heating system in the home upfront
so that much of the interior work, particularly the finishing
and painting of the sheet rock, can be done. While the plumber
is working, I’ll have an HVAC crew installing a new heating
system which consists of a new gas furnace and central air
conditioning. I haven’t always replaced functional HVAC systems
and even today, if the current system is fairly new, I will
avoid it. Primarily, though, I always install completely new
systems. Finally, if the electrical system needs to be updated
in any way, I usually do this while the HVAC system is being
installed. In many instances, if I am installing central air
conditioning in a home that didn’t have it previously, the
electrical system will need to be updated to accommodate the
central air. Other than this, which isn’t always necessary, I
rarely have to do any electrical work in my homes.
Step Six - Phase Four: Framing and Subfloors
Once the exterior and the HVAC, plumbing and electrical systems
are done, I begin to address areas such as rotten wood, tearing
down walls and building new ones. Of course, if I’m going to
remove or build a wall containing plumbing and/or electric, then
my crew has to do it before or during Step Five. I make an
effort to finish the basement of every house that I renovate. It
creates more living space, and for many of my buyers, my
finished basement is the reason that they buy my home.
Step Seven - Phase Five: Sheet Rock (Drywall)
Once I have completed all of the major systems, then I begin to
do my sheet rock (a.k.a. drywall). If at all possible, I prefer
to just skim and patch the walls, but I frequently put a lot of
new sheet rock in my homes. Hanging and finishing the sheet rock
is something that takes a while, but it goes a long way toward
making an old house look new.
Step Eight - Phase Six: Painting
Once all of the sheet rock is done, we get paint on the walls.
First, we’ll put a coat of primer or a light first coat of paint
on the walls and then have the sheet rock crew fix any flaws,
which won’t show up until there is paint on the walls. As soon
as the flaws are repaired, we’ll put two more coats of paint on
the walls.
Step Nine - Phase Seven: Installing New Kitchens and Baths
Once the paint is on the walls, we get our vinyl floors in the
kitchens and baths before installing all the new cabinets,
commode, vanity, etc. We usually take our kitchen dimensions to
Lowe’s or Home Depot and have them design the kitchen for us. It
makes my contractor’s life easier and we always get the right
size cabinets with a good fit.
Step Ten - Phase Eight: Punch Out
Once the kitchens and baths are installed, we start to wrap
everything up. Contractors usually refer to this as their “punch
out” and consists of all the little details such as outlets,
switchplates, and light fixtures. Many times, a homeowner will
walk through and create a punch list with the contractor. Since
we’ve worked together for so long, my contractor already knows
what needs to be done and we don’t need to do this. Sometimes it
seems like the punch out is the hardest part of the whole
renovation since it takes so long to complete everything on the
list. However, this is also the part of the job that makes your
renovation a good one or an excellent one.
Step Eleven - Phase Nine: Carpeting
Since we don’t want workers ruining the new carpet, this is the
very last thing we install. We usually put new wall-to-wall
carpeting throughout.
Step Twelve - Phase Ten - Clean Up and Landscaping
At this point, the home should be finished and we’ll begin the
clean up. Since you want your homes to stand out, it is
important to get them clean and looking like a million bucks. If
I’m going to do any landscaping, it is usually done here as the
last thing.
Step Thirteen - Phase Eleven - Marketing
Once the home is complete, I immediately begin marketing it. If
the area is hot and the home is going to move quickly, then
sometimes I’ll start marketing before completion, but most of
the time I prefer to have the entire job done before allowing
people to see the home.
Step Fourteen - Phase Twelve - Final Repairs Required
Once the home is under contract with a buyer, they may select to
use a home inspector and their lender will order an appraisal.
As a result of the inspection or appraisal, you may need to do
additional repairs. Then the inspector or appraiser will
reinspect the property to make sure the repairs have been done
before issuing their final approval.
About the author:
James O’Keefe is the owner of My Millionaire Friend,
www.mymillionairefriend.com, offering FREE articles, tips,
hints, and real-world advice on how to make money with your
website. Visit his site or join his FREE newsletter by sending a
blank email to mailto:newsletter@mymillionairefriend.com.
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