What to Look for When Rehabbing Older Properties
Fixing up an older property and selling it for a profit can be a rewarding real estate investment, but it can also be a risky and costly endeavor. In order to maximize your potential for success, there are some elements that you should look for in properties you are considering flipping.
While every building may have some small, minor cracks in the foundation, large cracks can indicate a serious problem. Be sure to carefully inspect the structural condition of any property you are considering for purchase. If you are in doubt about what to look for, consider having a professional come and check it out for you.
Replacing a roof can be a costly renovation, so be sure to check over the condition of the roof. Are shingles missing? Are there visible leaks? If the property does need a new roof, this doesn’t have to be a deal breaker, but you will want to figure that cost into your budget.
Wiring and Electrical Components
Some older homes have very dated electrical systems in place. You will need to inspect the panel to see if upgrades are necessary. Check all of the fuses to see if they are modernized and in good condition. The property may need additional electrical outlets installed. You will also want to look over the HVAC unit and ensure that all of the parts, including the condenser, are present and working properly. This is important information to know before making your real estate investment.
Plumbing upgrades and repairs can be overwhelming, so check all the plumbing in the property thoroughly, and budget for what you will need to spend. Find out if the property is on sewer or a septic system and look for any leaks or drainage issues. While you’re at it, take a long look at the bathrooms. Do they have the modern amenities and the large size that many potential buyers prefer?
Interior and Exterior Paint
If the property you’re considering is older, chances are it will need some new paint and trim work done. Clearly, the outside of the home or building will be a more difficult and expensive job, but interior paint can add up, as well. Check the walls for damage that would cost more funds to repair. Are you going to need primer in addition to the color that you choose?
Rehabbing an older property can be a lucrative real estate investment, especially if you do your homework and make a detailed budget of potential repairs and renovations. Be sure you know what you can expect to spend up front so that you can have a realistic idea of the profit you stand to make.