Repair Blues

You answered your own question.

Yes look at the Neighborhood and determine from perception what to do or not to do. I just finished flipping a house with a good buddy. Over the length of the project there was much debate about what to save. We had painted paneling, old toilets, no backsplash on the stove, etc.

Your scenario may be different, I don't know your neighborhood. But I can tell you my prefferance is to update it all. Thats me. My Realtor told us not to. We listened and she was right. Turned out that all of the things we wanted to do would not put us in a higher selling price. Basically we could put $5,000 into a kitchen and not gain any more on the listing price.

We painted over paneling and patched holes. It was perfectly fine.

I would say to always replace the toilet. $100 is worth it, and they're easy to do. Showers, I don't know. What do you want to do/have to do. Our shower had rotten substrate under the existing tub/shower surround tiles. So we gutted it and replaced the tiles. If you know what your doing its not very hard to do, and the cost is marginal. $200-$250 for backer board, thinset, tiles, and grout.

Check out http://www.thetiledoctor.com/ This is an awesome website.

House was on market for 7 days and BOOM it sold!

When rehabbing a property you want to bring it up to the level of the neighborhood it is in. Any money you put into the improvements you want to get it back with the sale of the property. If you over improve a property you will not get your money back because of the market value property. Know what you can spend on your rehab and don't go over it. Stick by this rule and you will not spend to much money on fixing up properties.

Hi, David~

When running the numbers for the rehab/reno what was itemized?
The finish out for rentals is very different for that of retail flips.
Be consistent with the "mint" condition of a property in comparison to current neighborhood standards. Comb other rehabbed props for comparison. Look at it from the future occupants' perspective, not necessarily what you'd like---be it a tenant or retail buyer. The finish out will determine what it's purpose will be and how fast the property will move. Stand back and ask "Would I want [to buy/to rent] this house now?"

Joe Jurek has a standard model for his rehabs...The kitchen, baths, flooring and paint are basic necessities. It's pretty much a "cookie cutter" methodology in that he uses the same schemes for every property he rehabs---same kitchen design, same sink-tub-commode-cabinet for baths; same flooring, doors, colors; same fixtures throughout, etc. I think he's written a how-to book recently, BTW. They suggest this model during Boots on the Ground seminar, too.

Determine the level of finish out while running the rehab numbers as far as your exit strategy. Then do NOT go over budget! Stick to the Checklist/plan, unless, of course, something unforeseen crops up. The inspection should have clearly exposed that though. Fix what's broken & what needs updating, make it cohesive (& appealing) throughout. Bring it into the 21st century, inside & out. Make it shine! Make a positive difference.
Keep a business head, no emotions. LOL