Standard Foreclosed Home 1,000 sq. ft. 3 – 4 beds, 1bath
Rule of Thumb Costs (costs are averaged)

EXTERIOR

Roof – standard tear off and reshingle
$4,000

Roof – replace plywood
$1,500

Roof – add a layer of shingles
$3,000

Vinyl siding (removal of old siding included)
$6,000 or $5 – $6 / sq. ft.

Tuckpointing
$1.50 / sq. ft.

Pour new concrete – 4″ deep
$7.00 / sq. ft.

Replace windows
$225 – $250 / window

Cap windows (w/ aluminum)
$80 – $100 / window

New soffets and facia
$2,500

Install new gutters
$1,200

Replace exterior doors (steel or solid wood)
$400 – $500 / door

Landscaping/grounds cleanup
$500 – $1,000

INTERIOR

Gut whole house interior – includes disposal costs
$2,500

Rough plumbing – run new copper plumbing through house
$4,000

Upgrade to 100A panel
$1,500

Rough electric

… Read the rest

Landlord’s flooring guide for rehabbing for cash flow

Rehabbing a foreclosure to hold as a rental property, versus selling it to a homeowner, requires a different approach to the rehab than one may be accustomed to.  Think durability.  Most tenants generally do not care for their homes as well as homeowners.  Also, many homes in rental heavy neighborhoods usually wind up having many more live-in boyfriends, girlfriends, and kids than originally accounted for on the lease.

Rehab choices for a rental house should be made with with durability and ease of maintenance in mind.  Remember that when you decide to sell your investment property down the line, you will have to clean up after the previous tenants anyway.  So at that time, invest the additional $3,000 to $4,000 to spruce up the house to make it look homeowner ready instead… Read the rest

Roof

A cheap and effective roofing rehab choice can be the use of roll roofing.  This choice is better suited for homes with steeply pitched roofs.  Instead of shingles, this roofing choice is rolled onto the roof and stapled in place.  This choice is cost effective and reliable if installed correctly.  Now it does not look as nice as a shingled roof, but we have not had any difficulty renting out homes because of this.  The appraisal was not effected either.

Another option is to add another layer of shingles to the roof depending on what the local building code allows.  If the roof is very old there is a good chance that the plywood will have to be replaced also.  Analyze the roof carefully because there is ~ $4,500 difference between a full tear off and replacement versus just… Read the rest

Here is one piece of rehab advice before we get started.  It is your job to tell the contractor what needs to get fixed. Remember this is affordable housing not luxury living.  Even well intentioned contactors forget this sometimes, so you must remind them.

Real estate investment clubs

Real estate investment clubs are the ultimate source of leads for almost anything you need as a beginning investor.  Find the investors that are actively buying, fixing, and flipping properties and ask them for contactor referrals.  Don’t be shy, most rehabbers and foreclosure rehabbers will be more than willing to share their contacts.  In general, people love to help other people.  Investors and rehabbers attend these meetings to network and exchange ideas with others in the rehab business.  New investors can find answers and guidance to many of there newbie investor questions… Read the rest