Here we’ll cover some basic information that will help you to figure out the cost that you will incur in attempting to rehab an older property. If you are into Fix and Flip projects, you’ll need to know exactly what your rehab cost is going to be before you find yourself in over your head.
Getting accurate construction and Rehabilitation cost is going to be one of the most important things for a new investor to profit from his work. Do be careful to avoid the pitfalls associated with attempting to calculate your cost per square footage. The wiser option in attempting to calculate cost is going to be based on all of the specifics of the job; breaking down components to come up with a clear and concise tally.
Keep in mind that every construction job is going to be different – problems that you’ll face with each job will vary greatly. Also, rehabilitation cost will vary from City to city and from state to state.
The number of repairs that you’re likely to encounter during a rehabilitation for any particular property can be very extensive, but we will break down some of the most common cost below.
Wow this is by no means a complete list of all the possibilities, it will at least get you on the right track and give you an idea of what involved.
Your first set of cost involves the demolition and trash removal on your newly purchased property. The cost of demolition will vary based the work involved and on the types of materials that are being hauled away.
You’ll find that the materials that are more difficult to remove from the property more weight of course cost you more. Removing old carpet for instance, will cost you much less then the demolition calling cost for tile flooring. Along with the cost of hauling away the materials, you’re also likely to deal with a separate disposal fee. This will be the fee that the local enfield requires for your materials to be dumped. If you’ve never dealt with a landfill, you may want to price out the metric ton rates in the areas where you’ll be investing.
Now starting from the inside out, we’ll go over some of the areas that you want to focus on early on in your rehab. In no particular order, take into account your electric, plumbing, sewage system, water heater and HVAC system.
Electric. With most older homes, the wiring is not to be up to Modern code requirements. It is likely that you’ll have to find yourself replacing the main junction box and possibly a significant portion of the wires running throughout the home. Modern codes various types and sizes for wiring throughout the home so that they are able to manage more demanding current requirements. Another point to consider, although commonly overlooked, requirements for placing electrical outlets at increments of at least every 12 ft along any particular wall. As a side note, but also very important code requirements and many areas also include the installation of smoke detectors with any new home or reconstruction.
HVAC. For maximum value, when rehabilitating an older home that may or may not have an existing HVAC system it is important to consider installation of at least a 5 ton unit along with all of the proper tubing, ventilation, thermostats and wiring. You’ll want to make sure that your system is adequately to handle the size of the home along with the climate of the area that the home is in.
Plumbing. Part of your plumbing job for your rehab might consist of replacing old pipes with new copper pipe fittings and clips. Fortunately for the sake of your wallet, some of your antiquated Plumbing will be able to be replaced by PVC.
One of the areas of Plumbing that you will likely encounter will be your sewage system which probably require replacing a due to older homes having cast iron drains, leave rust out I’m. Another consideration is that odor pipes may not fit the current requirements for diameter size.
Another important point to consider estimating your plumbing cost is going to be the replacement of the water heater. Unless the home has been kept up very well by its previous owner is likely that the water heater is going to be very old and outdated acquire replacement. with that replacement whether it be gas or electric, you’ll need to make sure that all of the pipes connections and safety features are in place.
In our next post we’ll move on to the bathroom and kitchen. Giving you pointers to focus on when attempting to estimate the cost involved and rehabilitating two of the central rooms in any home.