How often are engineers needed for rehabbing properties

Question

In the property rehabbing and house flipping world, how often is an engineer needed to sign off on some of the more intricate or delicate rehab scenarios? Can a contractor handle most structural issues, or is it good to have an engineer handy?

Jorge Borjas · Answer

I've experienced that to a small degree, when I thought a bathroom design looked fantastic, i.e. modern, slick, impressive, but just to hear the majority of women say it was too manly or just not like it the way I did. So lesson learned. Just because I like it or think it's creative, doesn't mean it's going to increase the chances of more people liking it as well, especially for the niche I want to pursue at the beginning (130k-250k ARV in Atlanta MSA). Thanks for your input J. Very much appreciated. Loving your book btw!

Mike F. · Answer

Statistically, almost never. Engineers are typically required when something is structural. 99.99% of rehabs don't involve structural changes, but if yours does such as opening up a kitchen by removing a load bearing wall, or adding an addition or moving beams, putting in a window that wasn't there, then you'll need one. Very rare that a GC would be an engineer and wouldn't have to hire one for a stamped letter to give to the building dept. The building dept really will have the final say in the matter and this could vary from jurisdiction to jurisdiction. I've completed over 1000 remodels and have needed an engineer once.

J Scott · Answer

Being creative will (often) reduce your potential buyer pool.  Unless you're doing high-end/custom projects or the creativity involves reducing obsolescence, being creative is generally only going to cost you money...

Aaron McGinnis · Answer

I hear that a lot

The last flip project we completed (needed an engineer) beat market by about 20 percent and kick started a neighborhood revitalization.

Jorge Borjas · Answer

Love the minimal cost part, not so much the minimal creativity part.

Aaron McGinnis · Answer

We deal a lot with old houses and creative architecture (new builds, additions)... most of the time, investors are doing rehabs that fall under the general category of 'big dumb box with the minimal possible creativity and cost' =)

John D. · Answer

@J Scott (Question) How often, when ordering at an Italian restaurant, do you order pasta?

@J Scott (Answer) More often then when I am at a Chinese restaurant.

Jorge Borjas · Answer

Thanks for the analogy, J. It does help to clarify my thinking. I guess it all depends on the niche you choose to work in and the houses you choose to invest in.

What kind of restaurant do I plan to go to? Whichever nourishes my body and doesn't make me sick...if you know what I mean.

@Aaron McGinnis what's different about your jobs that they're outside the average rehab metrics?

Aaron McGinnis · Answer

For us? Just about every job... but our jobs aren't a great metric to use against the average rehab.

J Scott · Answer

Sorry, but that's a ridiculous question.  It's like asking, how often do you order pasta when you go a restaurant.  If you go to Italian restaurants a lot, you'll order pasta a lot more often than if you go to Chinese restaurants.

Likewise with houses.  If you buy the types of houses that require engineering/structural work, you'll deal with engineers a lot more often than if you buy houses that only require paint and carpet.  I know people who have done 100+ houses and have never used a structural engineer, and I know people who use them on nearly every house they rehab.

So, what kind of restaurant do you plan to go to?

How often are engineers needed for rehabbing properties

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