Posted by Dawn Griffin
So, You Want to Buy a Rehab Project?
Yesterday I went out with one of my new clients to look at rehab possibilities. I always think the first day out with a new client is interesting. It’s a learning process for both of us. It can be a little overwhelming especially if you are unprepared for how badly some of the places are in need of repair.
This particular client has experience with renovation as he has worked with several developers as a general carpenter. He is able to buy a place with cash, then slowly over time put the home back together using his own funding. In that regard he is very fortunate. But there are loan options out there for people who need to borrow the funds for purchase and renovation.
Here are a couple shots from our tour yesterday. This is the second floor of a mixed-use building. The rooms are spacious and much of the original molding is present. Still, this place needs to be completely gutted.
The pine floors were in pretty bad shape. A small portion of the home was open to the elements so there is some water damage that needs to be taken care of. In addition to all of the cosmetic work, this space will need all new plumbing including the sewer lateral line and new water supply service, new electric and HVAC including ductwork.
This is a photo of the rear of the building. Obviously there’s some brick work that needs to be done in addition to all new windows and doors. The floors in this room were shot as well.
And here is the third floor. It is missing an entire section of wall! Needless to say this project was a bit too overwhelming for my client. The good news is we looked at 7 other properties yesterday and he found two homes that were more his speed.
So the moral of the story is–Yes, you can rehab, but it may take some searching to find the right place.
