Home Rehabs-What advice would you give someone on their 1st-Rehab
I want to begin rehabbing homes and then reselling in the Indianapolis area. I do HVAC/Plumbing - cabinet installs and flooring. I want to make some connections. I'd like to see what experts have learned along their journey and what they would do different knowing what they know now.
Spend time when finding the right home. As someone in the trades, you can roughly tell how much work you need to do. Some stuff you want to know beforehand
Roof estimate cost
How far away is the dump
How far away is home depot
Will you rent / How much are rents in the area ?
Insurance quote
Can I finance the finished product ?
Check the outlets/ breaker box
Very good tips. Thank you very much. How would you determine the After rehab value of a property?
Get multiple quotes, and don’t necessarily pick the lowest one. Pick the one that makes you most comfortable that you’ll get a good result for a good price.
What I would recommend to you is to connect with investor-friendly agents in the Indianapolis area. If there are local Facebook groups for investor agents, join the groups and ask there. You can also go into the Network here in BiggerPockets and look for investor agents in that area.
Tell them what you are looking for (for example: Single family home, max purchase price $200,000, needs work). Then they can send you properties that fit your criteria. They are also able to tell you what the ARVs are (comparable sales).
Since you do the renovations yourself, you have an advantage over many investors because you can keep renovation costs down and do estimates yourself. Once you get to a home and do a walk-through, you can see if the deal would work for you and make you money once you sold it (based on the ARV).
I hope this helps. Feel free to ask questions here or DM if you need help. Wish you the best, brother.
Hi Henry, I'm into flipping myself here in Indianapolis. I would love to help/connect with you if you're interested.
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Just make sure your numbers are right. Its not rocket science (though many make it seem that way LOL ) . its ALL about the numbers
Good Luck
I would always start by the numbers and be conservative with the ARV. Especially with the market changing, you always want to see it as a best case and worst case scenario in order to plan ahead!
@Henry Maldonado the big ticket things like roof and HVAC are easy to determine. Same with the cosmetics. It's the hidden things that you should worry about. Indianapolis has a lot of older homes which could mean old, out dated electrical and plumbing. Also, older homes tend to have clay sewage pipes which may have cracks or breaks. That can be very expensive to replace. I would have your sewage and main water lines inspected and then get a 3rd party warranty on them. You can get a warranty for around $20/mth and it's well worth it.
Quote from @Juan V Lopez:
Henry, this is great. I recently helped my sister and brother in law purchase a short-term rental property and renovate it (he does tile, painting, cabinets, a little bit of electrical, etc just like you).
What I would recommend to you is to connect with investor-friendly agents in the Indianapolis area. If there are local Facebook groups for investor agents, join the groups and ask there. You can also go into the Network here in BiggerPockets and look for investor agents in that area.
Tell them what you are looking for (for example: Single family home, max purchase price $200,000, needs work). Then they can send you properties that fit your criteria. They are also able to tell you what the ARVs are (comparable sales).
Since you do the renovations yourself, you have an advantage over many investors because you can keep renovation costs down and do estimates yourself. Once you get to a home and do a walk-through, you can see if the deal would work for you and make you money once you sold it (based on the ARV).
I hope this helps. Feel free to ask questions here or DM if you need help. Wish you the best, brother.
Very helpful insights. Thank you very much. Ill be sure to DM you. This is a great network for investors.
Quote from @Mike D'Arrigo:
@Henry Maldonado the big ticket things like roof and HVAC are easy to determine. Same with the cosmetics. It's the hidden things that you should worry about. Indianapolis has a lot of older homes which could mean old, out dated electrical and plumbing. Also, older homes tend to have clay sewage pipes which may have cracks or breaks. That can be very expensive to replace. I would have your sewage and main water lines inspected and then get a 3rd party warranty on them. You can get a warranty for around $20/mth and it's well worth it.
Agree on the roof. Ill probably make myself a punch list to makre sure i analyze all needed repairs to determine if a project is worth it or not.
Hi! @Henry Maldonado I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of long-term rentals and STRs. I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.