How To Find A Good House To Remodel
The first thing I do when I am looking at a property to rehab is pull up to the house from my car and scope the area. I look at the neighborhood, I look at the houses on the block to see what type of condition they are in, if they are well kept or not. Im checking to see if they have new roofs or old roofs, new windows, new siding. I scale the yard and see how big it is, I judge the exterior of the house, the brick, the soffit and the fascia. I am trying to determine if its in good condition or not.
Then I go inside. I start inspecting everything. How old is the water heater, the furnace, Im looking at the concrete steps, figuring out if theyre in good condition, or poor, if theyre cracking. I look at the trim. I look at the doors. I look to see what type of products they used. Im judging everything on the house. Im estimating the cost of anything that needs to be repaired or replaced. Im looking for things that stand out, that add value. Im looking for things that detract, that dont add value or lower value.
I analyze the layout. I check the condition of the floors, the walls, and the door knobs. What type of ceilings does it have, is it popcorn or is it knock-down ceiling texture? Im adding all these things up in my head. Im trying to decide how much all of this stuff is going to cost to fix. I am asking myself what can I do with the property? Are there any changes to the layout or to the design that I can make, that will make it more open or desirable, more marketable? I want to make it more enjoyable to live in.
The goal is to make it a place where people want to be, where they want to live. All these concepts are principles of real estate. I got through properties. That is what I do for a living. And on each property I ask my self three questions.
- How much it is going to cost to buy?
- How much its going to cost to fix?
- How much will it sell for?
I need a margin. I need a profit margin great enough to make it worth my time and big enough so I wont lose money worst case scenario.
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