Avalanche of Money Lenders Replaces Customary Lunch with Private Investors

Luncheons with a coterie of investors with deep pockets used to be the avenue that lead real estate investors to the Land of Ready Cash. Today, however, more and more private lending companies are purveying rehab loans to rehabbers and real estate investors who want to renovate their rental properties. The government is also offering rehab funding with terms and conditions varying from city to city.

A real estate investor does not have to go far to look for a rehab loan. Skipping the need for leafing through the menu of the restaurant where private investors’ money were used to be raised, a cash-hungry real estate investor can instead browse the Internet for a list of lenders for this kind of loan. For the newbie, however, selecting the lenders to transact with could be overwhelming.

What Do You Need The Money For?

When deciding on which type or source of rehab loan to choose, keep in mind your purpose of your loan. Are you about to buy a handyman special or bid on a foreclosure? Do you plan to do up a rental property? Would you be willing to rent out your property to low income families? Do you need the cash immediately? Look for the kind of rehab loans that best suit your needs.

Where To Get Rehab Funding?

Banks. Most banks and lending companies shy away from rehab projects. Some local banks may offer rehab funding but the red tape, sluggish rate of approval and high credit rating requirements that go with bank loans often discourage real estate investors from seeking funding from these institutions. If you are looking to buy a handyman special, you may want to look for other sources of rehab loans that can provide you with faster funding.

Government Grants for Rental Rehabilitation Programs. This is for the socially responsible landlord who is willing to rent out affordable, decent, safe and clean housing for low income families. If your property is located within the given city boundaries and could accommodate at least 10 families, then you may apply for this forgivable deferred loan which funds up to 50% of the total cost of renovation. Other certain conditions you must agree with include renting out the rehabilitated property to tenants below 60% median income, setting maximum rental rates per unit, annual reporting of tenant income and other rental information, and organizing the annual maintenance inspections to be done by the city. Owner occupied units are not included in this program. Provisions for this type of program may vary from city to city.

Private Investors/Hard Money Lenders. This type of lenders still remains to be the fastest source of funding for real estate investors. They can lend you 100% of the acquisition, rehab and closing costs, they require less paperwork and more lenient about your credit rating. However, these conveniences come with a dear price tag. Be prepared to pay at least 15% interest and at least 10 points or 10% fee which is added to the amount loaned. This is suited for real estate investors dealing with a motivated seller or bidding on a foreclosure or estate sale, since the ability to move quickly is of the essence here. Just make sure you have done your due diligence.

With many competing hard money lenders springing up, some have refined their terms into more borrower-friendly provisions. It is better for you to obtain financial sources that do not exact prepayment penalties. Not only are they expensive, they may also hamper your momentum for moving quickly. If you have a good credit standing, opt for private lenders who offer real estate investor-friendly programs such as the “6-Month No-Pay Plan.”

So, which source of rehab funding will you be turning to?

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??

Typical Foreclosure Viewing Instructions: Remove the Front Door Yourself!

Most experienced real estate investors and rehabbers have figured out a way to bypass having to be accompanied by a real estate agent every time they view a vacant home or bank owned property.  Some investors decide to get a real estate license for themselves while others have friends as real estate agents that get the lockbox combos for them. Others just sweet talk or persuade the listing brokers into offering up the combos – it’s possible.  These practices aren’t being recommended, so be careful not to get in trouble if viewing a vacant home without permission.  Many agents will actually instruct investors to bring a power drill with them to remove the front door to gain access to the house as long as the door is screwed shut upon leaving.  REO listing agents don’t make a lot of money per deal, so they have to concentrate on volume.  It’s all about relationships. Befriend an agent at a local REI club meeting and you may get access to all the foreclosures you ever wanted.

Viewing several (6-8) foreclosures in a morning is very tiring and always an adventure in of itself.  This is especially true for those investors choosing to invest in the rougher neighborhoods due to the above average cash flow opportunities these hard hit areas present.  One day, I managed to walk through and estimate the rehab costs on 11 REO’s while in pursuit of my next rehab project.  I was mentally and physically drained at he end the day, but it was this process that helped me develop the knowledge I needed to eventually stop viewing every property prior to placing an offer.  Based on certain neighborhood generalities and housing types, I created a worst case scenario formula for placing offers.  If the numbers made sense, I submitted an offer without ever viewing the property until it was actually under contract.  This is what really kick started my real estate investing career while simultaneously reducing my time away from home.

Property Rehab Tool Bag

Foreclosure Search Tool Bag

After viewing over 500 properties over the years, I have learned that the following tools are essential to maximizing one’s time in the field.

• Pre-planned list of foreclosures to see and in what order to see them
  • When you leave your house in the morning, there should be no doubt as to where your going first, second, and third that day.  Bring printed maps or directions if needed.  Don’t forget the lockbox combos.
• 1 million candle power flashlight with spare battery and car charger
  • Most REO’s and foreclosures are boarded up and the electric company has turned the power off to the house.  For efficiency and safety reasons do not try viewing a dark beaten up house with only a small utility flashlight.
• Back-up flashlight
  • Just in case your spot light goes out and the second battery is drained always carry a back-up flash light in your car so you can at least finish looking at the property your at.
• Cordless power drill with various bits
  • As I mentioned earlier, in some cases the front door will actually be screwed shut and you’ll need to remove the door to enter.
• Screws for re-securing windows or doors
  • Always have spare screws for re-securing doors, windows, and boards on your way out.
• Digital camera or camcorder
  • Even if you took meticulous notes, it is nearly impossible to remember what the first house you saw looked like after viewing 5 others that day.
• Clipboard/pen and paper
  • Some investors use a checklist when they are estimating the rehab costs of house, especially when starting out and that’s a good idea.  Do this long enough, and you will be able to estimate the rehab cost to within $2,500 off the top of your head after your walk through.
• Heavy duty boots
  • Sandals won’t cut it when walking through mold, water, and broken boards.
• Wear pants not shorts
  • Vacant foreclosed homes have sometimes been trashed by their previous occupants; don’t take any chances.
• A snack and drink
  • This may sound like your in third grade, but when your really in the groove or sometimes not in an area where you wan to stop, the candy bar and drink can prevent a serious headache from coming on.
• Navigation
  • Never get lost again.  The one negative side to always using GPS, is that it tends to dumb down my natural sense of direction which makes it twice as hard to find something when I don’t have my GPS.
• Laptop with wireless card or an iPad
  • This is not necessary but definitely very useful.  Have all your info at your fingertips; it’s like never leaving the office.
• Cell phone
  • One phone call to your real estate agent is all you should need to submit an offer on a hot property.  Also, for safety reasons, never view vacant properties without a cell phone.  It can be pretty nerve racking when you come across a squatter.
• Pocket knife
  • Necessary for cutting and lifting up the carpet to check for old hardwood floors underneath.  Always look to see what’s under the carpet.  Finding old natural hardwood floors in decent condition always put a smile on my face.
• Baseball bat (Louisville slugger is my preference) in the car
  • Again, you can never be too cautious.

I would love to hear what other items, tools, or technology other investor’s have utilized to ease their foreclosure house hunting trips.

Short-Term Loans

Hard Money Lender

A hard money lender makes short-term loans based on the value of an asset, in this case a property, with little regard to the borrower’s credit and/or finances.  Hard money lenders charge higher interest rates than standard banks due to the high risk nature of these loans.  Unlike traditional banks, hard money lenders can provide funds quickly, usually in 10-14 days, to purchase and rehab distressed properties.  These properties can be in need of significant repairs or be in various stages of foreclosure. This makes these loans popular with first time real estate investors that have little working capital or poor credit scores.  Look to use hard money loans to rehab foreclosures as your means to purchase and rehab your first couple properties.

Rehabber Loans

Hard money lenders will only provide loan terms of 4 – 6 months at which time the investor has to sell or refinance the property.  It is EXTREMELY important that the first time rehabber have a rock solid exit strategy, otherwise his rehab investments will soon belong to the lender.  Not having a SOLID exit strategy is the biggest and most common mistake that a newbie home flipper can make when utilizing hard money.  If this happens to you, work with your lender to get at least a 6 month extension and ask them for referrals to end-lenders that specialize in refinancing these situations.

In order to refi the hard money loan, you will need to find an investor friendly lender that has no seasoning requirements and will appraise the property in its newly remodeled condition and not at its most recent sale price.  Also, do not list the property on the MLS (multiple listing service) if you are planning to refinance.  Lenders will not refinance a property that is currently for sale.  The bottom line is that you either have to have the property pre-sold pending completion of repairs or have guaranteed refinancing in place.  Otherwise, you are setting yourself up for failure.

A typical hard money lender will lend up to 65-70% of the after repaired valve (ARV) of a distressed property.  The ARV is calculated by the lender’s appraiser and is based on an expedited sale scenario in case the lender has to foreclose on the property and resell quickly.  This gives the lender the safety margin needed to minimize their losses when things turn sour.

100% of Rehab Funds

The lender will typically provide 100% of the rehab funds needed to make the property saleable or rentable as detailed in your rehab estimate that you will provide to the lender.  This rehab estimate needs to correctly address the rehab plan in its entirety.  It is very difficult and time consuming to ask for more money in the middle of a project because you missed something in your initial estimate.  It often makes more sense to fund that portion out of your own pocket if possible.  Otherwise you most likely will be waiting for another appraisal and/or underwriting (or committee) approval for the additional funds.

The rehab funds will disburse in 3 – 4 draws as work is completed throughout the project.  Most hard money lenders will not issue your first draw until a portion of the home rehab has been completed.  Work with your contractor to have him put up the initial money to start the project.  If your contractor refuses or says he has no money then you shouldn’t be using him in the first place if he is that poor.  Be wary of giving unknown or untested contactors money upfront in order to start construction.  You will get burned eventually.

High Interest Rates

Depending on the lender, the down payment will vary from 0 – 10% of the purchase price and the origination points will also vary from 0-10% of the purchase price.  Interest rates will typically vary from 13 – 18% and will be charged on a monthly basis on your outstanding balance (only the money you have actually used).

Hard Money Loan

Hard money lenders vary greatly so the newbie rehab investor must shop around to find the best programs out there.  Local rehab clubs and real estate investment groups are a great source for finding hard money lenders you can trust.  Be wary of unscrupulous private money lenders and expert real estate investors that drive themselves around in their own limos.  This may sound funny, but you wouldn’t believe how many crazy people are out there.  Stay away!

I have personally purchased HUD foreclosures with only $500 out of my pocket using a hard money lender to finance the whole project including all closing costs.  Once you have some cash in your pocket, look for cheaper ways to finance your deals.  Community reinvestment banks are who you need to develop relationships with next.

Example of Hard Money Financing:

After Repaired Value (ARV) is $90K

70% of the ARV is $63,000.

As long as the total loan amount is less than $63,000 the deal will work.

Bank foreclosure (REO) purchased for $25K

Rehab Estimate is $30K

10% down payment on purchase price is $2,500

4% origination is $1,000

Closing, attorney, insurance, titles fees – $2,000

Total loan amount in this case would be $55,500 (assuming the lender rolls in closing costs and points).  This deal will work every time.

Note: Remember to subtract your down payment from the calculation of the loan amount.  Depending on the tax pro-rations (in most states the seller has to give you the prorated amount for the current year’s taxes) you may not have to bring the full down payment to the closing table.

Related articles

• What you must do PRIOR to Obtaining a Hard Money Loan

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 a re-shingle or roll roofing.

Soffit, fascia, and gutters

Many older homes have wooden soffits and fascia that can be scraped and repainted without having to replace every piece of wood.  Gutters can sometimes be salvaged but in cases where they are bent beyond repair replacing them will cost around $1,200.  Make sure the water adequately drains away from the house to avoid unnecessary basement leaks.

Siding

Some homes many have perfectly good siding its appearance is just plain ugly.  In these cases consider adding new siding to just the front of the house.  This works especially well in neighborhoods where the homes are close together and the side views are not easily visible.  Some investors paint the siding on the front of the house for a fresh appearance.  Again this depends on positioning of the home in relation to its neighbors.

When dealing with wooden siding, one can sometimes replace the broken sections of siding and move on.  Generally the older foreclosed homes will be in such poor condition that new vinyl siding will be required.  Brick homes on the other hand can usually be tuckpointed for much less then residing an entire house.  Keep that in mind when evaluating properties.

Privacy fences

Privacy fences greatly increase the appeal and safety of rental properties.  This is especially true of the rentals located in rougher neighborhoods.  The privacy fence will run about $20 per foot installed but is worth every penny due to the extra protection offered to the tenants plus its appeal from the street.  This is always a good selling point to prospective tenants.

Exterior doors

The exterior doors to the house should be solid wood or steel doors with the added protection of metal security screen doors on the front and back of the house.  The need for the metal security screen doors will vary depending on the neighborhood the rental property is located in.  Install the security doors at the beginning of the rehab project for extra protection from break-ins.  The additional cost of the security screen doors is worth every penny given the peace of mind they will provide you and the tenant.

Windows

In order to pass a section 8 inspection all windows must open, close, and lock freely.  Very rarely will this ever be the case.  If the windows are in good working order, this can save you $3,000 – $5,000.  Otherwise, be prepared to spend around $250 per window installed.  Many old homes have windows that were painted with lead paint which will need to be professionally scraped off and repainted.  These old windows are also horribly energy inefficient.  With that said, replacing the windows on an old home is many times the best decision.

Avoid placing regular windows in the basement.  On single family homes, basement windows should generally be glass block windows because of the extra security they provide.  Weak basement windows are a popular entry point for thieves.  Sometimes this is not possible if the basement is actually a garden unit in a two flat.  In this case, installing bars across the windows may be necessary.

Porches

Replace individual wood planks that are broken or rotted.  Once complete scrape off any old paint and apply an exterior paint to seal the job.  The freshly painted porch will enhance the curb appeal which in turn will help rent the property faster.  If the porch is slanted or falling, this can usually be fixed by jacking up the porch and repairing the foundation below.  Most rental homes will not have tall porches that require professional inspections, but when dealing with two-flats or homes with stairs that lead to the second floor make sure your contractor is familiar with the local building codes regarding porches in your area.

Related articles

• House Fixing Nightmares!
• 4 Great Reasons Why REIs Must Do A Green Rehab
• 6 Ways to Legally Avoid the EPA’s New Lead Based Paint Renovation Laws
• Estimating Construction Cost – Actual Repair Budget Attached
• Landlord’s Rehab Flooring Guide
• How to Find a Contractor to Flip That House