Buying my first Rehab...is there a Rehab checklist?

[Parker Shoaf]

Hi, I am buying my first Rehab to flip.  I have a General Contractor in place, but as I am working on getting my first deal and looking at properties to evaluate the numbers.  Is there a Rehab checklist that I should use or what is the process to document quickly what each property will need more or less?  Thank you!

[J Scott]

BiggerPockets has an entire book on that topic:

https://store.biggerpockets.co...

[Parker Shoaf]

Thank you!  I will be purchasing this.  This is probably the part of the process that "scares" me the most.  It's just a lot of unknowns.  I don't want to buy a property especially for the first time that is a total nightmare.  I kind of want to play it safe while I get my feet wet for the first flip.  

[Robert Finn]

@Parker Shoaf The SA market has also shifted to a bit more normalcy, so negotiating within the deal can also help you save. You can start by underwriting the deal based on what you're comfortable spending on rehab and the ARV based on comps. As you have properties meet your criteria, you can start making offers and if any are accepted, use your option period to perform inspections and get a more precise bid. Some of these homes may not add up, and you'll be out a few hundred dollars for inspections, but it's money well spent for the education and to find the right property.

[Eliott Elias]

I have a scope of work sheet I’m happy to share. DM me 

[Bruce Woodruff]

Have you had a Home Inspection yet? A good HI will uncover most thing wrong with the property and refer you to specialists for those things they don't know about. 

That is how a lot of people develop an initial Scope Of Work, then call in your GC to expand the SOW and give you a related budget.....

[Parker Shoaf]

Quote from @Eliott Elias:

I have a scope of work sheet I’m happy to share. DM me 

 Thank you!  I will send you a message.

[Parker Shoaf]

Quote from @Bruce Woodruff:

Have you had a Home Inspection yet? A good HI will uncover most thing wrong with the property and refer you to specialists for those things they don't know about. 

That is how a lot of people develop an initial Scope Of Work, then call in your GC to expand the SOW and give you a related budget.....

 I haven't located the property yet that I am willing to purchase but am working on it.  Do you typically do home inspections on every investment property  you purchase? 

[Parker Shoaf]

Quote from @Robert Finn:

@Parker Shoaf The SA market has also shifted to a bit more normalcy, so negotiating within the deal can also help you save. You can start by underwriting the deal based on what you're comfortable spending on rehab and the ARV based on comps. As you have properties meet your criteria, you can start making offers and if any are accepted, use your option period to perform inspections and get a more precise bid. Some of these homes may not add up, and you'll be out a few hundred dollars for inspections, but it's money well spent for the education and to find the right property.

 That's pretty much what I was thinking.  Yes, I am in the New home build world so definitely understand the market has shifted here.  How have things been in that $200-$300k price point for investors?  Is it still really competitive or has that cooled also? 

[Bruce Woodruff]

Quote from @Parker Shoaf:

Quote from @Bruce Woodruff:

Have you had a Home Inspection yet? A good HI will uncover most thing wrong with the property and refer you to specialists for those things they don't know about. 

That is how a lot of people develop an initial Scope Of Work, then call in your GC to expand the SOW and give you a related budget.....

 I haven't located the property yet that I am willing to purchase but am working on it.  Do you typically do home inspections on every investment property  you purchase? 

I don't personally because I am a builder by trade. If I weren't, I would definitely spend the $400 (approx?) to get the whole place looked over and a checklist initiated.....If you can find a HI who is also a GC, even more better......

[Robert Finn]

@Parker Shoaf Still pretty competitive in that price range with right under a month of inventory. Days on market have up-ticked and will continue, so that will open more doors for negotiation. I've helped a few of my clients with negotiating seller closing credits for a rate buy down or closing costs. 

[Richardd Barran]

Quote from @J Scott:
BiggerPockets has an entire book on that topic:

https://store.biggerpockets.co...

 PREACH, this is a flipper's bible, lol

It's crazy how relevant it is in almost any market and how well it's aged. 

One thing I would suggest is to create a great relationship with an inspector. 

Let them do their best to find the red flags of the distressed properties and things that need to be up to code and inspected, and use THAT as your punch list for your contractor. Create a timeline and SOW with the budget you have in place for that. This will empower YOU to be the leader and to tell your contractors what YOU need to be done rather than what THEY would do ( I was guilty of that in the beginning since I did not know very much about the rehab process). 

Hiring an inspector for 500$ could have possibly saved me 20k in foundation issues that I did not know about. 

[Natalie Godoy]

Quote from @Parker Shoaf:

Hi, I am buying my first Rehab to flip.  I have a General Contractor in place, but as I am working on getting my first deal and looking at properties to evaluate the numbers.  Is there a Rehab checklist that I should use or what is the process to document quickly what each property will need more or less?  Thank you!

 Hi Parker! 

Congratulations on joining the house-flipping space! I have many investor friends and many have told me that once they got started it quickly became a passion for them. I'm an open book when it comes to finding off-market properties. Shoot me a message if there's something you're scratching your head on and I'll point you in the right direction. ;)

- Natalie