I am looking a REO property to Fix and Flip.I looked at the property and found mold on the ceiling and Asbestos tiles on the floor which as broken and scattered allover the house.when I was walking through the property with the realtor She told me that it has to be done professionally by a certified people and she also told me that I can not dispose it in a normal disposal. Its a 1000 SFT home. I guess the roof was leaking all over the home and I see a plastic sheet covered over the roof of the home which means complete roof needs to be replaced. All the rooms ceiling is pealing off and I see mold in the air vents and in the corners. Can any one throw some light as to how much would it cost to clean the asbestos (800SFT three rooms) with a professional and get it certified that it is safe to enter for any one to come and work in the property? This is in MA not sure if it makes any difference due to state by state laws? This is my first FIX and Flip that I am looking to assess and if feasible want to take the plunge.
Also if any one has any thoughts on how much would it cost to fix every thing in the house other than the bear bones house? its a ranch style and needs complete kitchen renovation ,walls,ceiling in all the rooms including kitchen,complete ROOF, Single Bath Room. Idid a prelim estimate of 40 K but the hazard wast threw me off guard and not sure what will come out if the walls are broken . I see the electric panel is concealed in the kitchen cabinets and me and the realtor was trying to find it and it took us good 10 mins to search. This house was built in 1955.If I re do this home can the city come back at me and say that its not per the current code? just wanted your thoughts on how to approach this Fix and Flip. This house is in the market for the past 11 months . first of all its priced high 175Kand the houses in that streetwith this kind of SFT is selling for about 225K.
I know there are lot of BP professionals with a wealth of knowledge who have taken up such challenges and who can help me with this. I will appreciate all your help.
@Vinay Mekala I don't think you want that much headache in there. Asb quotes are tricky, it varies from one operator to the other, and they need access to the house to give you a price, but they won't go out unless you are the owner, or have a test result, you're kind of an inbetween. With that said, you can or might want to test the house for asb, then shop around using pictures and results only. Now for the rest of the house, a gut out rehab with 40k budget should be ok at your state level. 1955 might also trigger lead contents of the house, the testing company should also test for lead. If all goes well or if not that bad, then your asb and lead disposal might cost you around 5-15k (CA price). applying your 30% costs and profit, you might end up offering around 110k, so it's highly unlikely that it will be accepted.
If the asbestos is only on the backing of the floor tiles, it will not take much expertise to remove it safely. Some flooring installers will do it for you and will include the removal and disposal in their bid.
The water damage is probably your biggest problem. From what you describe, it sounds pervasive.
Surface mold can be cleaned off, but if mold roots into the walls and woodwork, most of that will have to be replaced. Especially the sheet rock. Sounds like you will be renovating down to the studs.
Since the house was built in 1955, lead-based paint might be present as well. Having a renovator who can check for the presence of lead-based paint and use appropriate renovation techniques is key. See this EPA publication: https://www.cpsc.gov/s3fs-public/renovateright.pdf
The electrical system is probably not adequate. Check the plumbing too. If you have to redo the electrical system and/or the plumbing system, the cost can be significant. Also, take a close look at the HVAC system, which is another big ticket item.
Do not even consider doing a whole house renovation without appropriate permits. If you have appropriate permits, the code inspectors will keep you on your toes to make sure everything is done up to current code. This will protect not only you, but most importantly, future occupants of the property (homeowners or tenants).
All in all, this may be a poor choice for your first rehab, unless you are willing to spend more time and money than you have just to learn the trade. From your initial questions, you may do better by taking the time to read a few really good books about rehabbing.
@Manolo and @Marcia .
Thanks for your inputs and help. I will keep looking for another lead. This is the kind of help I was looking for and bang On its there in BP. This gives me more confidence to reach out as there are so many professionals who are willing to help.
Appreciate your feed back.
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