Rehabbing a House From Start to Finish
by Steve Cook
It is easy to be intimidated by the size of a rehab project, particularly if
you've never tackled one before. This chapter breaks down the steps involved in
completing a renovation from start to finish and removes some of the mystery,
and hopefully some of the fear, surrounding a renovation. I hope you find it a
useful tool when eyeing your next fixer upper.
Step One - Meet With Contractor and Define Job
When starting a rehab, the very first thing that I do is walk through and
evaluate the project myself. Then I set up a meeting with my contractor to get
his input and finalize my strategy including how to handle certain repairs and
whether or not we're going to make any changes to the basic layout of the
property. Now that I work exclusively with one general contractor, my life is
much easier since I only have to meet one person. He contacts everyone else and
then relays the results of his conversations with them to me.
As a result of my experience, I'm becoming fairly adept at determining the best
way to do the work. Therefore, my contractor usually winds up doing completing
the projects in the way that I envision. However, he does offer advice and I'm
always open to suggestions as to better or cheaper ways to get the job done.
Step Two - Define Job and Buy Materials
Once we meet and determine the work we are going to do, my contractor and I put
together a draw schedule. This is usually required by the lender and lists the
order in which we intend to complete the work required. I like to shift things
around to keep the cash flow coming from the lender. My contractor likes to do
things in an order that makes his life easier. We usually settle on something in
between.
Step Three - Phase One: Demolition
Through experience, I have finally learned to do my entire "demo" first. I used
to get into my homes and start the jobs immediately. However, this meant we were
constantly working around trash, having to haul trash away, etc. Now, I just get
a dumpster or two at the very beginning of a job, bring in a crew, and begin to
rip everything out. We clean out all the trash and tear out the kitchen,
bath(s), drop ceilings, paneling, flooring, and anything else that might get in
our way of completing the job properly and efficiently.
Step Four - Phase Two: Roof, Windows and Siding
The rest of the job typically begins on the exterior of the home. We start with
the roof in order to ensure that the inside of the house stays dry, and usually,
I'll have the windows and siding done at the same time. One reason I like
completing the entire exterior rather quickly is that it starts to attract
attention from the neighbors and people who drive by.
Step Five - Phase Three: Plumbing and HVAC
The next two items on my list are the plumbing and the heating and air
conditioning system. In the past, I had contractors who didn't do the plumbing
right away and it only led to disaster. After they hung, finished and painted
all of the sheet rock in the home, they turned on the water only to find that
there were pipes burst in the walls. Today, I ALWAYS make my contractor check
out the plumbing first, including the sewer lines.
It is important to have a working heating system in the home upfront so that
much of the interior work, particularly the finishing and painting of the sheet
rock, can be done. While the plumber is working, I'll have an HVAC crew
installing a new heating system which consists of a new gas furnace and central
air conditioning. I haven't always replaced functional HVAC systems and even
today, if the current system is fairly new, I will avoid it. Primarily, though,
I always install completely new systems.
Finally, if the electrical system needs to be updated in any way, I usually do
this while the HVAC system is being installed. In many instances, if I am
installing central air conditioning in a home that didn't have it previously,
the electrical system will need to be updated to accommodate the central air.
Other than this, which isn't always necessary, I rarely have to do any
electrical work in my homes.
Step Six - Phase Four: Framing and Subfloors
Once the exterior and the HVAC, plumbing and electrical systems are done, I
begin to address areas such as rotten wood, tearing down walls and building new
ones. Of course, if I'm going to remove or build a wall containing plumbing
and/or electric, then my crew has to do it before or during Step Five. I make an
effort to finish the basement of every house that I renovate. It creates more
living space, and for many of my buyers, my finished basement is the reason that
they buy my home.
Step Seven - Phase Five: Sheet Rock (Drywall)
Once I have completed all of the major systems, then I begin to do my sheet rock
(a.k.a. drywall). If at all possible, I prefer to just skim and patch the walls,
but I frequently put a lot of new sheet rock in my homes. Hanging and finishing
the sheet rock is something that takes a while, but is goes a long way toward
making an old house look new.
Step Eight - Phase Six: Painting
Once all of the sheet rock is done, we get paint on the walls. First, we'll put
a coat of primer or a light first coat of paint on the walls and then have the
sheet rock crew fix any flaws, which won't show up until there is paint on the
walls. As soon as the flaws are repaired, we'll put two more coats of paint on
the walls.
Step Nine - Phase Seven: Installing New Kitchens and Baths
Once the paint is on the walls, we get our vinyl floors in the kitchens and
baths before installing all the new cabinets, commode, vanity, etc. We usually
take our kitchen dimensions to Lowe's or Home Depot and have them design the
kitchen for us. It makes my contractor's life easier and we always get the right
size cabinets with a good fit.
Step Ten - Phase Eight: Punch Out
Once the kitchens and baths are installed, we start to wrap everything up.
Contractors usually refer to this as their "punch out" and consists of all the
little details such as outlets, switchplates, and light fixtures. Many times, a
homeowner will walk through and create a punch list with the contractor. Since
we've worked together for so long, my contractor already knows what needs to be
done and we don't need to do this.
Sometimes it seems like the punch out is the hardest part of the whole
renovation since it takes so long to complete everything on the list. However,
this is also the part of the job that makes your renovation a good one or an
excellent one.
Step Eleven - Phase Nine: Carpeting
Since we don't want workers ruining the new carpet, this is the very last thing
we install. We usually put new wall-to-wall carpeting throughout.
Step Twelve - Phase Ten - Clean Up and Landscaping
At this point, the home should be finished and we'll begin the clean up. Since
you want your homes to stand out, it is important to get them clean and looking
like a million bucks. If I'm going to do any landscaping, it is usually done
here as the last thing.
Step Thirteen - Phase Eleven - Marketing
Once the home is complete, I immediately begin marketing it. If the area is hot
and the home is going to move quickly, then sometimes I'll start marketing
before completion, but most of the time I prefer to have the entire job done
before allowing people to see the home.
Step Fourteen - Phase Twelve - Final Repairs Required
Once the home is under contract with a buyer, they may select to use a home
inspector and their lender will order an appraisal. As a result of the
inspection or appraisal, you may need to do additional repairs. Then the
inspector or appraiser will reinspect the property to make sure the repairs have
been done before issuing their final approval.
Bio:
Since 1998 Steve Cook has flipped many hundreds of houses as an active
Baltimore-area real estate investor. Steve's unique specialty is the "flipping
homes 1-2 punch", a proven system of real estate investing that powerfully
combines wholesaling and rehabbing houses. Steve Cook is dedicated to helping
others succeed through understanding and aggressively applying his time-tested,
step-by-step approach to flipping real estate.