I am in the process of doing a BRRRR on a SFH. The roof is relatively new (within 3 years old), but looks bad. Should I purchase a new roof for $6500 and hope that increases the ARV?
My expected numbers on the SFH (without the new roof) are below:
Purchase Price: $155,000 cash
ARV: $300,000
75%: $225,000
REHAB: $70,000
Should I add the new roof for the overall aesthetic of the home but more importantly will this raise the ARV to help accommodate the extra rehab expense?
If the roof is only 3 years old doesn’t leak and was installed correctly hire a company to clean it. It will look great when there done. I’ve had it done it will be a big improvement. If you were flipping it I would say it’s a must. For a rental it’s just an aesthetic look. Pay a few books and clean it.
If the roof is only 3 years old doesn’t leak and was installed correctly hire a company to clean it. It will look great when there done. I’ve had it done it will be a big improvement. If you were flipping it I would say it’s a must. For a rental it’s just an aesthetic look. Pay a few books and clean it.
If the roof is only 3 years old doesn’t leak and was installed correctly hire a company to clean it. It will look great when there done. I’ve had it done it will be a big improvement. If you were flipping it I would say it’s a must. For a rental it’s just an aesthetic look. Pay a few books and clean it.
Thanks Kenneth,
This is exactly what I will do. I found a local roof power washing company. Getting an estimate from them today
WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
6y
i think pictures would speak 1k words here. "looks bad" could mean various things. i wouldn't think a new roof would add anything meaningful to your arv, as it's already captured within the final listing price (i.e., people expect it to be functional and have plenty of life left when purchasing).
Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
6y
A 3 year old roof that looks bad? Pics?
From an ARV standpoint, Appraisers will rate the roof on a useful remaining life standpoint and condition standpoint, not on an aesthetic basis. I don't think you'll get any value bump out of replacing a roof under 3 years old with a new roof. I'd be more worried about what local comps the appraiser is going to pull from nearby sales which is really what drives the ultimate appraised value versus replacing such a young roof that (hopefully) has another 20-25+ years left in it
I've seen people have roof washing companies come out and work wonders on older roofs. They use a low pressure water stream and special cleaning solution. Be wary of an inexperienced company who's going to just get up on the roof and blast if with high PSI water, you could end up with roof leaks and more problems than when you started. This is something I'd want to see prior homes they've done before and after pics and look for good reviews online