Investor · Fargo, ND · Member since 2015 · 84 posts · 11 votes
Hey BP Nation,
I'm going to show my newbness a bit here. I've never done a rehab project, and never built a house, so I'm wondering what are the major aspects of a property that create the value on deteriorated properties? Is it a good foundation? A structurally sound roof? Solid framing? Good exterior? There are several properties I've been looking at in my market that are clearly vacant, some of which are less than habitable. Another way of looking at it, what do the rehabbers out there see as automatic deal breakers?
Stay away from foundation repair, unless you really know what you're doing and you have an excellent engineer and foundation guy.
Its not rocket science, but somehow the building department makes it seem like it is. The cost of your remodel has a lot to do with what the city requires. In my area, if its an investment property you cannot pull an owner permit on the property. Code requirements get stricter and more expensive every year. Lead based paint and asbestos can take a bit out of your budget.
I think every property is different, you need a good contractor to give you realistic prices and crunch your numbers.
Roofs, windows and siding are easy as you can find large reputable companies anywhere for this type of work.
The older the property the more unknowns until you start tearing into it, plus high probability of asbestos and LBP.