Bed

Clock

Speakers

Laundry Basket

Bookshelf

Coat Rack

Wine Cellar

Bookshelf and Bike Rack

Clock

Rehabbing a House Image via Wikipedia

The Herculean Project of Rehabbing a House

Rehabbing a house can be daunting to someone doing it for the first time. To eliminate the feeling of intimidation, let’s tear down this massive piece of work into several smaller and manageable tasks.

Steps in Rehabbing a House

1. Assess the project and establish the specific jobs that needs to be done with your contractor. Ask your contractor for his ideas, then from there, set your final action plan on how to undertake the renovation project, particularly how to go about specific repairs. It is also in this stage when you decide whether or not to modify the basic layout of the house. To simplify things, have your contractor gather his own rehab team and discuss with them what has been agreed upon. It would be great to work with a reliable and experienced contractor who can give suggestions on how to finish the project faster or how to cut on costs without compromising quality.

2. Set a timetable with your contractor based on what you have discussed, and determine and buy the materials needed for the repairs. This will not just serve as guide on the sequence of tasks to do to finish the project, but is also done as compliance with one of the requirements of your lender.

3. Demolish and dispose everything that you will not be needing to make the property clear of debris and ready for rehab. You can arrange with a garbage collector to haul rubbish. Consider knocking down baths, kitchen, flooring, drop ceilings, paneling and others that could just impede the rehab project.

4. Fix the exterior. For security reasons, rehabbing a house must begin with fixing the exterior. Make the repair of the roof a priority to make sure that the interior of the house does not get wet with rain and other external elements. Also fix windows to protect the property and the materials and equipment it contains from vandalism, burglary and theft. Secure locks of doors leading outside, and consider replacing these locks. While you are at it, you can also have the cladding fixed. A presentable exterior allows you to start marketing the house even if its interior has not been done yet. Neighbors and other passers by will notice the newly-renovated exterior.

5. Fix plumbing, sewer, ventilation and electrical systems. Handling the plumbing job should come before hanging the sheet rock and the painting job to make sure to address leaky pipes that can just ruin the walls. If the HVAC system of the home needs to replaced, have an HVAC crew install a new system including a new central air conditioning system and gas furnace, while a plumber takes care of the pipes. Concurrently, you can also have the electrical system checked and upgraded, if it is the first time for the home to have the central air conditioning. Otherwise, there is not much you need to do with the electrical system.

6. Tackle framing and subfloor problems. Replace rotten wood and walls. Take note, however, that you should already have done tearing down and replacing a certain problematic wall which has plumbing or electric systems prior to addressing these systems in the previous step. This is also a good time to rehab the basement as a finished basement can sell a home.

7. Handle sheet rock or drywall. With all the principal systems done, you can now start with hanging and finishing sheet rock. This can take some time, but it can surely give your old home look like new.

8. Paint the walls. With the drywall completed, painting can be started by applying a coat of primer or a light initial coat of paint on the walls. Before applying two more coats of paint, have a sheet rock crew mend any imperfections first.

9. Install new kitchen and baths. You start this step by installing vinyl floors in the kitchen and baths. Then install the new vanity, toliet, cabinets, cupboards, and others. To make things easier for you and your contractor, you can ask Home Depot or Lowe’s to design the kitchen (depending on your target market). Just provide them with the necessary dimensions.

10. Wind the project up. In contractor’s jargon, this is the “punch out” stage, during which minute details like light fixtures, switch plates and outlets are taken care of. Since this is your first time to work with the contractor and your first rehab project, inspect the almost done job and make a punch list with your contractor. Make sure that you do not miss out any minute but important details.

11. Install the carpet. Carpet installation comes last so that the working crew will not damage the carpet.

12. Clean up the property from rehab debris and landscape the exterior. Cleaning the property is important to make the property more saleable. While others are cleaning up, a landscaping team must also be starting their job, that is, if you decide to include this.

With your first rehab project done, you are now ready to market the property. You can actually have done so even if it has not been completed yet, especially if it is in a hot neighborhood. If not, getting the project done first may be better. Just remember that even after you have a buyer ink the contract already, you may still be required to do some final repairs if these are decided on after inspection and appraisal.

To a newbie rehabber, rehabbing a house is a Herculean task. Hence, splitting up the entire project into several smaller tasks helps you to be systematic and to make the endeavor less-intimidating.

Related articles

• How to Manage Property Rehab Costs for Maximum Efficiency and Value
  
• 6 Fantastic Tips In Managing Contractors
  
• Should You Rehab A Haunted House?
• How to Find a Contractor to Flip That House
• Rule of Thumb Costs for Rehabbing a Foreclosed Home

Manage Property Rehab Costs Image via Wikipedia

Quick Tips on How to Minimize and Control the Cost of a Rehab Project

Purchase the general construction materials and supplies for your contractors and have it delivered to the job site.  Instead of having your contractors spend their time looking for material, do it yourself if you can.  It’s amazing how long a simple trip to Home Depot can turn into.

Property Rehab Written Scope of Work

Always put the scope of work in writing with enough detail to avoid conflicts and “misunderstandings” during the rehab of the property.  It’ amazing how crystal clear your vision of the finished product is during the walk  through with the contractor and then how any questions come up in the middle of the rehab.  Questions such as, “Oh, you wanted that wall knocked down?” or “You wanted more than two kitchen cabinets?”.  All of a sudden these things are not included in the contractor’s scope as you had originally thought.  Tight control of the rehab project’s costs is needed to maximize your ROI.

Discounts on Bulk Construction Material Purchases

Work with your Home Depots and Menards pro-departments to figure out how much volume of material needs to be purchased to receive discounts of 5 – 15% in some cases.  Try to figure out how to get them to deliver your material for free to your job site.

Oversight of the Rehab Project

The rehab of your home will not happen efficiently without some kind of oversight of the project and its rehab contractors.  I have a very good partner who runs our construction jobs and without his constant oversight, the lunches tend to get longer, breaks occur more often, cigarette runs happen frequently, and cell phone conversations happen more often. Bottom line: you cannot hand any contractor a pile of money and come back a week later and hope something got done.

Pay Contractors On Time

Pay your rehab contractors on time and as agreed upon.  Most subcontractors prefer cash and that’s fine with me; it keeps the cost down.  The guys working on the job don’t care if your hard money draw didn’t come through or is late because of paperwork not being in order.  You may be able to convince them to work a couple more days like that, but soon after that your job (and materials) will come to a halt.  If you don’t have your own reserve funds to rely on, your planning and project management skills have to be perfect.

Security for Vacant Properties

If the rehab is in a rough part of town, spend the extra money upfront to properly secure the property from vandalism and break-ins.  See our article on Security for Vacant Properties for several options on how to protect your rehab project from bleeding money before renovations are even complete.

Utility Repairs

Call the utility companies, gas, electric, and water, the day after you close on your property in order to minimize the down time at the end of your project.  The rehab of a foreclosed home should take no longer than 21 days.  If the utility companies are running behind you may be stuck waiting for them to come out and not able to finish your homes renovation.  This includes waiting for a power line to be run to the house, a new gas meter may need to be installed, the water line to the house from the st

Finally, start executing the your exit or profit strategy before the property rehab is complete.  If the plan is to cash-out refi after repairs are completed, then start arranging the bank inspection and all necessary paperwork soon after closing on the purchase.  Start marketing property to prospective tenants during the property’s rehab phase.   I don’t believe in the school of thought that says you need to wait until the property looks perfect before showing it; be a salesman.

Related articles:

• 6 Fantastic Tips In Managing Contractors
• How to Find a Contractor to Flip That House
• 4 Great Reasons Why REIs Must Do A Green Rehab
• Estimating Construction Cost – Actual Repair Budget Attached
• Landlord’s Rehab Flooring Guide
• Landlord’s Guide To Exterior Rehab Choices

House Fixing at its best in this series of unbelievable home repair projects.

I should have known better when the contractor from Good Ole’ Boy Engineering said, “We can Fix House to meet anyone’s budget! He wasn’t kidding.

house_fixing_outlet

Alternate ceiling fan connections.  Eliminates the need for for those expensive electricians.

House_Fixing_a_water_heater_connection

Here’s what you can do with a little PVC pipe and a lot of couplings!

House_Fixing_HVAC_efficiency

The ultimate in supply and return air efficiency!

House_Fixing_roof_flashing

Roof flashing not needed.  It must not rain in this part of the country.  Wait till you see the roof leak catch system installed in the attic.

House_Fixing_support_beam_joists

Save money.  Just use use nail gun nails; they will hold up until you’re out of town.

House_Fixing_pipe_plugs

Improvise, adapt, and overcome. They said just plug it.  So I did!

House_Fixing_pipe_insulation

Plumbing Tip: When you use insulation as piping, remember to always use extra duct tape!

House_Fixing_electrician's_mess

I’m not an electrician, but it looks good to me. Good job boys!

House_Fixing_rusty_water_heater

When it rusts through, just turn it over.  It’s still functional.

House_Fixing_exhaust_louver

Undersized exhaust louver? Just use the plumbing vent for additional exhaust air.

House_Fixing_exhaust vents

If you can do it with one, why not more?

House_Fixing_house_ventilator

A less expensive but functional whole house ventilation fan.  My contractor did say he could work with any budget!

House_Fixing_attic_mess

Your guess is as good as mine.

House_Fixing_electrical cigar box

No need to ground this box.  The cigar box is located under the kitchen cook top.  Fendrich was a cigar company in Indiana where this house was located. Frugality at it’s best.

House_Fixing_lighted_fan

The latest trend in lighted ventilators.  Everyone has one.

House_Fixing_roof_leaks

Back up system for the roof that has no flashing at its penetrations. Yes, those are actually drain lines attached to catch basins that are catching roof leaks.

House_Fixing_Frankenstein_water_heater

This truly is the Frankenstein design of gas water heaters.

House_Fixing_missing_support_beam

Eh, didn’t need that beam anyway.

House_Fixing_dangerous_junction_box

Space is limited.  Take advantage of unused storage space.

House_Fixing_designer_air_plenums

The latest in designer outside air plenums.

House_Fixing_electrical_design_code

Efficient electrical design.  Who needs building codes?

House_Fixing_dryer_exhaust_vent

Save another hole in the wall.  Yes, go ahead and connect the dryer vent to the water heater flue.

House_Fixing_j-box

Dip can j-box, from Good Ole’ Boy Engineering Inc.

House_Fixing_electrical_work

It works and costs less.

House_Fixing_roof_penetration

When the power company told its crew to run electricity to the house, I’m sure they didn’t mean to just stick all the wires through a hole in the roof!

The definition of value engineering.

House_Fixing_dangerous_wiring

WTF is this?

House_Fixing_multiple_junction_boxes

When you run out of conduit, just use what you have left in the truck.

House_Fixing_shower_outlet

Duplex outlet in the shower allows your wife to use her electric shaver in the shower; the toilet paper over the tub is in case she cuts herself!! Not even a GFCI?!!

Related articles

• Foreclosed Nightmares
• Unlocking Hidden Secrets of Turn Key Properties
• Buy Investment Property and Make Money in 5 Ways
• What is a Hard Money Lender?

Buying The Right Property for House Fixing

Identifying the Right Repairs in House Fixing

Hiring the Right Contractors and Harnessing the Right Contract

Pay For the Right House Fixing Job

House fixing is a crucial part in a rehabber’s business where the bottom line of a deal largely depends on its execution and outcome, thus, properly dealing with the right contractors is a must.

Image via Wikipedia

These days, getting funding for your handyman specials from hard money lenders are getting harder as their requirements become more rigid. Traditionally, getting funding from these private lenders was almost as swift as their speed of driving by the property involved in the deal for inspection.  At the present real estate climate, however, many of these lenders may check on the tax returns, bank statements and current pay slips of borrowers. For this reason, some REI’s may be seeking for other financial fountainheads to fund their deals. Usually in their search for alternative source, they give Federal Housing Administration’s 203K loans the brush-off.

Giving 203K Loans A Second Thought

Ever since the Department of Housing and Urban Development set down the moratorium on investor involvement in the 203k Rehabilitation Program, ethical REI’s avoid this loan program lest they be charged of mortgage fraud. But hold your horses! There can be some ways you can benefit from this financial reservoir.

3 Ways on How REI’s Can Dip Into The Financial Reservoir of 203K Loans

Despite the exclusion of investors to avail of 203k loans, it does not necessarily mean that you cannot use it to your advantage. It just takes a matter of expanding your context and thinking outside the box. Below are some ideas. You may be able to think of more.

1. This will not apply to all but will serve well for REI’s who are looking into buying and doing up their own homes. Well, this scenario is obvious. This is also applicable to REI’s who just recently bought their place of residence. It is expressed in the program that homebuyers who bought their property with cash within six months may refinance the house by availing of the 203k loan. It is as if the homebuyer bought the house through the said loan. If you are a recent homebuyer, you can claim a cash refund which is net of down payment and the closing cost that goes with obtaining a 203k loan. And presto! You can use the cash-back to fund one of your rehab projects.

2. Some resourceful REI’s also suggest to work around the provision that says that the loan can be utilized to refashion a single-family home into a double-, triple, or quadruple-family building. It is not clear whether these newly converted units can be rented out to tenants or not. A residential property which is also secondarily used for commercial purposes is also eligible for this loan. However, the commercial purposes seem to imply an office or store. In this case, it was not clear whether the owner must be the one occupying the commercial space or it can be rented out to other businesses. Probably, this may only apply to non-profit institutions which are also eligible for 203k loans. It is best to clarify these issues to avoid trouble.

3. This is applicable to any REI and is more of a “selling”, rather than a “buying”, strategy. You do not directly apply for a 203k loan so that you can buy and rehab the property, but you can help your buyer to avail of the government financing. As a consequence, you get to sell your property and you are freed from the trouble of rehabbing the property. It is akin to the ethical house flipping. Just make sure that you do not overprice and your buyer really has the wherewithal to pay back the mortgage. Your buyer gets to choose the color of the carpet and the paint and all other personal preferences he may have for his new dwelling. This means that you satisfy your buyer and with this, you could possibly get a referral to another homebuyer for your other fixer-uppers.

The Hurdles of 203K Loans

As with other government and bank loans, leveraging on this loan will encumber you with the red tape that rarely exist when dealing with private lenders, although it charges lower interest rates. The extra paperwork can snatch your time and speed in doing things so it would be great if you do not source financing from 203k loans often.

If you are running low on funds but have plenty of time to allocate for the processing of 203k loans, then you can consider the ways mentioned above on how you can use it for your REI business.

Should you be afraid of trying to comply with the EPA’s new lead based paint laws?  I have heard several real estate investors offer up many different opinions on this topic.  Based on the fines involved, I would not willfully violate these laws whether you like them or not. The six ideas presented below are derived directly from the EPA’s FAQ website.

The good news is that only one in four homes built after 1950 has lead based paint.  Depending on your city, this may not affect you very much.

The first thing you have to do is pay $300 to have your firm lead based paint renovator certified; which is strictly a fee in order to get on the EPA’s approved list and receive an approved vendor certificate.  Then, the newly certified firm has to pay to have their workers or supervisors trained on the “new laws” by a certified instructor trained by the EPA.

Fines for violations for the EPA Lead laws start at $37,500 per day of work! This goes up if they can prove that you knew about the law and went ahead with the work anyway.

As you will see from the FAQ’s, the EPA has decided that these rules do not apply to homeowner’s working on their home or to someone volunteering their time.   The law only applies if there is compensation involved – interesting?

How to Avoid Dealing with the EPA’s Lead Removal Rules

• Only buy and fix houses built after 1978
• Have the home tested and keep your fingers crossed (only 1 in 4 homes after 1950 have lead based paint)
• Do not disturb more than six square feet of interior surface or more than twenty square feet of exterior surface
• Gut rehab the entire house (reference question 6865 below)
• Have the tenant do all the repairs, landlord just pays for the material and tools (you can’t reduce the tenant’s rent though, remember no compensation for labor)
• Have your brother or friend perform the work for free

As you can see, there really isn’t a great solution here and the last two options aren’t very realistic.  You either have to get your own crews certified and trained or wind up paying a premium for a certified subcontractor.  Should you take the risk of ignoring the new law all together?  Be careful.  What are you going to do when your FHA approved buyer needs proof for his loan underwriting that the home was properly renovated under the new EPA guidelines?  Don’t think this can’t happen.

Here is what the new Lead Renovation, Repair, and Painting Rule (RRP) actually says:

EPA regulations now mandate that any contractor or maintenance staff, from plumbers to electricians to painters, who disturbs more than six square feet of lead paint, replaces windows or does any demolition while working in a pre-1978 home, school or day-care center, must now be Lead-Safe Certified and trained in lead-safe work practices. If not, you could face tens of thousands of dollars in fines. These regulations are now the standard of care for the industry and complying with them will reduce your chance of being involved in potentially “expensive lawsuits”.

Valuable Link to Materials and Downloads for Renovators on Renovation, Repair and Painting

http://www.epa.gov/opptintr/lead/pubs/lscp-renov-materials.htm

Below are the most interesting and relevant facts from the EPA’s FAQ website that would be of most interest to rehabbers, flippers, landlords, and property managers.

http://www.epa.gov/lead/pubs/rrp-faq.pdf

Question (6865)

If all or a portion of a pre-1978 housing unit has been gut-rehabbed after January 1, 1978, as evidenced by property owner and/or other verifiable documentation, do the RRP Rule requirements apply to work in that unit?

Answer

EPA believes that whole house gut rehabilitation projects may demolish and rebuild a structure to a point where it is effectively new construction.  In this case, it would not be a modification of an existing structure, and therefore not a renovation.

Question (5861)

How can homeowners protect themselves and their families from exposure to lead dust if they plan on doing their own renovations?

Answer

The RRP Rule does not impose requirements on homeowners performing renovations in their own homes. If you do decide to do a renovation yourself, it’s very important to take precautions to protect you and your family from exposure to lead dust.  EPA recommends that you follow these simple procedures:

• Contain the work area so that dust does not escape from the area.  Cover floors and furniture that cannot be moved with heavy duty plastic and tape, and seal off doors and heating and cooling system vents;
• Keep children, pregnant women, and pets out of the work area at all times;
• Minimize dust during the project by using techniques that generate less dust, such as wet sanding or scraping, or using sanders or grinders that have HEPA vacuum attachments which capture the dust that is generated; and
• Clean up thoroughly by using a HEPA vacuum and wet wiping to clean up dust and debris on surfaces and wet mopping the floors with plenty of rinse water before taking down plastic over doors, windows, and vents.

Question (6836)

If a renovator is only reimbursed for materials, would that be considered compensation?

Answer

No.  Compensation includes pay for work performed, such as that paid to contractors and subcontractors; wages, such as those paid to employees of contractors, building owners, property management companies, child-occupied facility operators, State and local government agencies, and non-profits; and rent for target housing or public or commercial building space.  Reimbursement for the cost of materials is not compensation.

Question (6837)

Is work done by friends, a brother-in-law, or volunteers covered by the RRP Rule if no one is compensated?

Answer

No.  The RRP Rule only applies to renovations performed for compensation.

Question (7009)

When repainting rental housing, if the landlord supplies the paint and materials, and the tenant does the labor without receiving money, credit toward rent, or other compensation, does the RRP Rule apply?

Answer

No.  The RRP Rule only applies to renovations performed for compensation.

Question (6703)

If I rent out apartments built before 1978, do I need to get firm and renovator certification if I do my own work on it?  What if I hire a renovation firm to do the work?

Answer

With respect to landlords, EPA believes that there are two circumstances where work being done in pre-1978 apartment is for compensation such that the landlord must be a certified firm and use (or be) a certified renovator.  First, if the landlord does the renovation him or herself, then the landlord must have firm and renovator certification.  Second if an employee of the landlord does the renovation work, then thelandlord must have firm certification and the employee must be a certified renovator.  However, if the landlord hires a renovation firm to perform the renovation, the landlord does not need firm or renovator certification, but the firm hired by the landlord must be certified and must perform the renovation using a certified renovator that directs and provides on-the-job training to any workers that are not certified renovators.

Question (6865)

If all or a portion of a pre-1978 housing unit has been gut-rehabbed after January 1, 1978, as evidenced by property owner and/or other verifiable documentation, do the RRP Rule requirements apply to work in that unit?

Answer

If only a portion of the unit has been gutted, the RRP Rule applies unless you have determined that the components affected by the renovation are free of paint or other surface coatings that contain lead equal to or in excess of 1.0 milligrams per square centimeter (mg/cm2) or 0.5% by weight.  This determination must be made either by a certified inspector or risk assessor, or by a certified renovator using an EPA

recognized test kit.  You must keep records of any lead-based paint free determination and make the records available to EPA if requested.   EPA believes that whole house gut rehabilitation projects may demolish and rebuild a structure to a point where it is effectively new construction.  In this case, it would not be a modification of an existing structure, and therefore not a renovation.

Question (6694)

Does the RRP rule apply to simple painting activities that occur when rental properties turn over?

Answer

No. If there is no surface preparation that disturbs the existing paint prior to painting, the RRP Rule does not apply.  If you disturb paint by scraping or sanding while preparing the surface, the RRP Rule applies.

Question (6832)

My firm is performing a renovation in an unoccupied home that will be put up for sale when work is done.  Does the RRP Rule apply to this renovation?

Answer

Yes.  Temporarily unoccupied or vacant housing is not exempt from the requirements of the RRP Rule.

Question (6659)

Is it a violation of the RRP Rule for a homeowner to hire a firm that is not certified?

Answer

The RRP rule does not impose requirements on homeowners, unless they are performing renovations in rental space. However, the hired firm would be in violation of the RRP Rule if it was uncertified and performing a covered renovation.

Question (6949)

I have hired a firm to renovate my home, but now I am concerned about whether the firm is a lead-safe certified firm.  How can I find out?

Answer

EPA has a searchable database to help you locate lead-safe certified firms near you at:

http://cfpub.epa.gov/flpp/searchrrp_firm.htm.  It is possible that your firm is not yet listed on EPA’s web site, but is certified.  If you do not find your firm on EPA’s web site, you should call EPA’s lead hotline at 1-800-424-LEAD (5323) and speak to an expert who can help you find out whether your firm is certified.

Question (6802)

Does the RRP Rule require a certified state lead inspector or risk assessor, who does not do renovation work, to become a certified renovation firm in order to take dust wipe samples?

Answer

No.  A certified inspector or risk assessor may make determinations regarding the presence of lead based paint at a renovation site without becoming certified as a renovation firm.

Question (6803)

Is the fee for firm certification waived for self- employed individuals or landlords?

Answer

No.  Congress requires EPA to impose a fee on certified contractors that is sufficient to recover the costs of administering and enforcing the RRP Rule.  All applicants for firm certification must submit the $300 fee as part of their application.  A firm’s certification is effective for 5 years.

Question (6677)

Does the term “target housing” mean just low income housing, or any home built before 1978 regardless of the financial status of the occupants?

Answer

“Target housing” means any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless any child who is less than six years of age resides or is expected to reside in such housing) or any 0-bedroom dwelling.  The income of the occupants of the housing is not relevant.

Question (7203)

If a project disturbs six square feet or less of interior surface or twenty square feet or less of exterior surface, is it necessary for a firm to comply with the pre-renovation education requirements, such as distributing the pamphlet?

Answer

No.  A project that disturbs six square feet or less of interior painted surface or twenty square feet or less of exterior painted surface is not considered a “renovation” under the Rule. It is considered a minor maintenance and repair activity.  As long as this type of disturbance does not involve any prohibited work practice, window replacement or demolition of painted surfaces, a firm need not comply with the pre-renovation education requirements.

Question (6992)

When renovating a common area in an apartment building, must my firm provide pre-renovation education to all tenants?

Answer

Yes.  Firms performing renovations in common areas of multi-unit housing must comply with the information distribution requirements before beginning renovation activities.  The firm must provide the owner of the common area being renovated (generally the building owner) with the “Renovate Right” pamphlet and obtain a written acknowledgement of receipt.  The firm must also provide the occupant of each individual unit affected by the renovation with information describing the general nature andlocations of the renovation and the anticipated completion date.  The firm may comply with this requirement either by mailing or hand-delivering the pamphlet and information to each unit, or by posting informational signs while the renovation is ongoing describing the general nature and locations of the renovation and the anticipated completion date.  For additional information on these requirements, visit

http://www.epa.gov/lead/pubs/sbcomplianceguide.pdf.

Question (6666)

Can you list specific activities deemed a disturbance of painted surfaces?

Answer

As a general matter, EPA believes that activities that create dust or paint chips are activities that disturb paint.  There is no definitive list of activities that disturb painted surfaces.  Some examples that can disturb painted surfaces include, but are not limited to:

• Making cut-outs in walls.
• Replacing a window from the inside or outside.
• Removing paint with a heat gun.
• Scraping paint.
• Removing kitchen cabinets.
• Removing paint by abrasive sanding.
• Removal of large structures, including demolition of interior plaster walls.
• Window replacement.
• HVAC repair or replacement, including duct work.
• Repairs resulting in isolated small surface disruptions, including drilling and sawing into wood and plaster.
• Scuff-sanding.

These activities and other activities which disturb paint could be relevant to many trades, such as (but not limited to) renovation, remodeling, general repair, general maintenance, plumbing, electrical work, carpentry, window installation, painting, weatherization work, and more.

Please feel free to leave your comments and vent about either how difficult this making life for you or if you plan on complying at all??

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 of tenant ready.

#1 Rule – Durability and ease of replacement or maintenance

Regular carpet will get trashed – go industrial

Install low pile industrial carpet in all your rentals

Whether the rental property is getting $3,000 per month or $700 per month, nice carpet will be in bad shape even after a relatively good tenant moves out.  If your rehab property has old and worn wood floors, refinish and seal the floors.  Old wood floors are usually solid oak planks which makes them super durable and will allow you to rent your property in half the time.   Otherwise install low pile industrial color (the grayish kind you see in office buildings) carpet with no padding in the bedrooms.  If the sub-floor is uneven underneath adding padding may help hide the uneven floor boards depending on the severity.  To you and I as homeowners this does not sound too appealing, but from a business perspective this single rehab decision could save the landlord thousands of dollars down the line.  The industrial low pile carpet hides stains, shampoos easily, and holds up well to a large amount of abuse and traffic.

Vinyl floors

Install vinyl on the kitchen and bathroom floors.  18” square heavy duty vinyl tiles work great in these locations.  Going with the tiles instead of solid sheet eases installation and future maintenance costs.  Ceramic is still a common favorite for many rehabbers but it tends to crack and break over time especially under heavy abuse.  Also, if the subfloor isn’t perfect (which many times it isn’t) the ceramic tiles will tend to crack and fall apart at the grout lines much easier.  18″ vinyl tiles can even be installed directly over ceramic tiles as long as the grout lines are brought level with the ceramic tiles before the overlay.  Vinyl is the best business decision for maximizing cash flow and minimizing long term maintenance costs.

Here is a great link for the basics on vinyl flooring.

http://www.thisoldhouse.com/toh/how-to/intro/0,,595318,00.html

Paint the basement floors

Rehab homes with unfinished basements should have the basements fully cleaned out, sprayed for bugs and have the concrete walls and floors patched in preparation for painting.  Use a concrete paint made for basements or exteriors to paint the floors and walls of the basement either gray or brown.  Paint the support columns and anything else in your way down there.  This clean and fresh look will make the basement more inviting to prospective tenants as many will consider this a bonus space for the kids to play in or for extra living space for adults.  Painting the concrete walls and floors in the basement provides a lot of bang for the buck.  It provides the perception of the house being larger than it is because of the clean and usable living space created in the basement.

Remember that you will not be the one living in this house, so your personal tastes may not be the same as to what goes into the rehab.  The goals are to provide affordable housing to the community while building long term wealth for yourself.  The flooring choices listed here are smart business decisions in regards to keeping current rehab costs low and future turnover costs in check.

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