How do you decide what “needs” to be replaced vs repaired

[Kevin Silva]

Hey all, when you first go out and do a walkthrough of a property how do you determine what actually needs to be replaced versus what can be fixed or modified or even left alone to keep construction costs low enough to get the property and make a good profit but still ensure there’s enough in the budget so your putting out a quality product and a desirable home

[Will Barnard]

Originally posted by @Kevin Silva:

@Max T. The issue I’m having is I feel I’m adding repairs that at the end of the day may not get the roi needed to make it worth while

Then your purchase price is too high or you are over improving the home for the market. The level of finishes in the homes of your competition is what you should pay closest attention to. Meeting or slightly exceeding those competitor finishes is where you want to be. That said, if the subject property needs a new roof, that is a necessity and not a “finish item” and while it does not necessarily add value to the eyes of a buyer, it is expected to be in good working order and not at the end of its life cycle so those decisions are easy.

To reface or replace kitchen cabinets is an example of where you are having trouble and like I said, what your competition has should guide you the most. Price points also play a large factor too as well as the end game. If you are rehabbing to sell to end user, the. The finish level should be higher than one rehabbed to rent out.