New to Real Estate · Philadelphia, PA · Member since 2020 · 13 posts · 4 votes
Hi, so I have a property that is completely gutted down to the studs, with entire kitchens and bathrooms ripped out(2/1,3/2 - duplex that my father owns outright but is currently unlivable and vacant. He has bad credit, very little cash to begin renovations himself, and is also just beat down physically). I plan to get a hard money loan to fix up the property then refinance and rent out one side while my father lives in the other side. He is getting older and will retire in the coming years, and the cash flow from the one side after the rehabs/refinancing should be good to cover most expenses on the property(PITI and maintenance/etc.).
However, it is an old property and I want to make sure the house is sound before I start the process of applying for the loan and getting renovation bids. Would regular contractors I hire be able to do a thorough inspection of the foundation and framing? I have never hired a contractor before, so this is going to be a journey. I am trying to get all my ducks in a row before I make any moves. Thanks for any info at all!
you can hire a structural engineering firm to do a physical condition assessment. Then you get quotes for qualified contractors to identify the cost involved in your project.
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
@Jason Wilson you could have an inspection done as they have no motivation to say something is wrong and needs work when it doesn't. Otherwise I would find a few GC's and get them to come walk it and give you an estimate and scope of work. You want a couple because if only one says the foundation needs work and the others don't you might want to look into that further and see if there is an issue or someone just trying to upsell some work not needed.
If you don't know any contractors, reach out to a agent, or property inspection company as they will know someone.
you can hire a structural engineering firm to do a physical condition assessment. Then you get quotes for qualified contractors to identify the cost involved in your project.
you can hire a structural engineering firm to do a physical condition assessment. Then you get quotes for qualified contractors to identify the cost involved in your project.
I would start by hiring a good home inspector to do an evaluation. They will be able to point out if there are structural concerns (e.g. party wall/foundation cracking, bulging exterior walls, etc). If yes, I would follow @David Lodato's suggestion to hire a structural engineering firm to do an evaluation.
If this property is just a standard down to the studs gut job and remodel, any good GC would be able to evaluate what is needed and give you a quote and a scope of work. Get 3 quotes and thoroughly check references for the contractors before hiring anyone, especially since this is your first project and it's pretty big (can be well into the 6 figures to fully gut and rebuild a multi-unit in Philly today) by the sound of it.
Real Estate Coach · Charlotte, NC · Member since 2016 · 399 posts · 341 votes
3y
I'll second the suggestions to hire an inspector as well as a structural engineer. A structural engineer will be able to deliver a signed and sealed report that states if the property is structurally sound, and if not what work needs to be done for them to sign off on the structural integrity.
If the engineer says that some form of remediation is required, you can take their requirements to multiple general contractors to shop the price as others mentioned
Contractor · Chadds Ford, PA · Member since 2015 · 567 posts · 460 votes
3y
@Jason Wilson I love your desire to help your dad out here.
The advice above is all sound. Do you have specific concerns about the structure? If not, I would say you might be ok to hold off on the structural engineer as that can get very costly. A good home inspector should be able to look for issues and if they find any, the engineer could help identify the extent.
Like @Jussi Lundstedt said, if there are no specific concerns and the inspector doesn't highlight anything, a good GC should be able to put it all together for you no problem.
The best trick I have working with contractors is to look for specificity and attention to detail in their quotes. If they come in and quote "Bathroom Remodel - $5,000" or "Kitchen Remodel - $10,000", that doesn't give you any information to make decisions. Either ask for way more specificity, or run away. We have taken over too many projects from clients that didn't do this and ended up firing their contractor because they constantly said "that's not in my scope" and tried to give them a change order for something that should have been included.