Updated 11 days ago on . Most recent reply
Rehab distressed property steps
Hi,
I bought a distressed investment property from a wholesaler using hard money fix and flip type of loan for 12 month term before which i have to refiance it to normal conventional or DSCR tyoe of loan. It has roof rain water leak issues. It is built in 1971. I am trying to rehab it to do BRRR strategy. I am planning to replace the roof immediately as step 1 for which i got estimate of 6k. I see sidings are in bad shape which are made of old cedar wood. I see chimney section needs to be rebuilt as lot of water damage. Also there is fireplace under chimney area. All that area in first floor and second floor have lot of damage. I see sheet rock trough out the home damaged and see mold. I see floor needs replacement. Kitchen in bad shape. Also bathrooms in bad shape.Also car garage in bad shape. HVAC also needs replacement. Water heater seems okay which is 2016 model. Electrical need upgrade. Plumbing seems okay. Wooden fence in bad shape i am thinking to replace with chain link fence. Also lot of big trees in backyard and front yard and side yard in which some trees are almost dead trees. Backyard also need grading as water running towards foundation which is slab foundation. It is on city sewer not on septic tank. What are the step by step things i need to fix. Is it good idea to give to general contractor. I am reaching different types of contractors and getting estimates inconsistently like some quote very low some quote very high randomly. Can I remove the structire of chimney projected section completely. (there is no HOA, Hope county will not object if I remove chimney projected section). Also is it good idea to close the fireplace also?
Please advise
Most Popular Reply
#4 All Forums Contributor
- Honolulu, HI
I can guarantee, based on the age of the unit, unless ALL plumbing has been replaced, out to the street, that system needs to be completely updated as well. Here is a Fannie Mae Estimated Useful Life Table. ESTIMATED. Local environmental conditions as well as observed actual condition of the various systems needs to be considered as well.
You have a big project ahead of you, and apparently very little experience or knowledge of common construction and residential systems. You need a General Contractor to oversee and coordinate employees or sub-contractors to get through this without creating major problems or injuring someone. Do not remove chimney or interior walls without an Engineer investigating and discussing your plans/desires.