What are some rehab jobs to skip? Over/Under rehabbing.

Question

Hello everyone,

I have my first flip property under contract and its in pretty good standing. But I've been reading about over rehabbing and under rehabbing.

My questions is, what are somethings that most people rehab or renovate that they could go without? Something that doesnt add any value?

2 specific things I was wondering about were the basement and garage.

The basement is partially finished so it has the drywall already up. No light fixtures and just concrete. Is it worthwhile (valuable) to add flooring? If yes, even further, is it worth doing tile over carpet? Mind you there are no leaks or mold in the house. Solid place

The garage is partially finished as well. I believe 2 of 4 walls are dry walled and painted white. Is it worthwhile to get the rest finished?

Thanks in advance!

Jonathan Godes · Answer

My partner and I are debating this scenario (basement finish) right now actually. One of our factors we are considering is that the house does not have an additional living space other than the one living room. Many families want a play room for the kids, a crafting/scrapbooking room for mom, a workout room, a home office, a "man cave" to watch the football game, etc.

The ability to have an extra living area really can appeal to ALL those special circumstance. If you house has only one living area, it might be a much better investment to finish off the basement than if your house had a formal living room and family room.

J Scott · Answer

It's simple...when you list your house for sale, there are a bunch of other houses that buyers will be looking at in your area that are comparable in terms of price, condition and specifications (i.e., your competition).  Go look at these houses now, and rehab to a point where your house is just a little bit nicer than those, with otherwise similar specifications.

Robert Obniski · Answer

@Peter MacKercher Thanks for the link! probably use that!

@Jasmine Lee I havent looked at them in the way I should when asking this question. Ill take another look. Also thanks for the color suggestions, this house will need a new kitchen and I might just go with what you suggested.

@Andrew Cordle Great pieces of advice! Although the garage is attached. I think im just going to give it fresh white paint.

@crystal

@Crystal Smith I will have to dig deeper into the comps provided. I hope they have what Im looking for. Thanks

Andrew Cordle · Answer

@Robert Obniski

Congrats on your flip. I love flipping in the Chicago Market.

On the basement we only finish out basements under certain circumstances.

• 1. Is it actually usable. Meaning are the ceilings at least 7 1/2 feet but I really prefer 8. 
• 2. Am I adding actual equity value. Meaning turning a 2 bed house into a 3 bed with a master suite is valuable. Adding two more bedrooms in the basement to a 4 bedroom house. Not so much equity value (sell ability value yes but not really equity value)
• 3. If you are not going to be adding equity value I believe it is better to brighten it up with paint on walls and floor, use bright lights, and put air fresheners that are ODOR Killer not a scent.

As far as the garage, I believe you said it is not attached. In those cases, I like to spray the walls and ceilings and paint the floors. Brown walls and the gray floor paint.

• 1. Again, you will not be adding equity value but you will be adding selling value.

One of the most important things is to take the reasons that they don't want to buy the houses away.

Good Luck.

Andrew

Javier Marchena · Answer

I would just paint the garage and basement floors. No carpet on the basement (humidity will ruin it for you or the future buyer).

Look for a good Epoxy Paint. It is cheaper than carpet and labor should be cheaper too.

Jasmine Lee · Answer

@Robert Obniski

Have you looked at the comps in your area to see how much houses sell for with a finished basement versus without one? If the comps are significantly higher for properties with finished basements/garages, then it makes sense to do the remodel. If the difference isn't that substantial, then it would be wiser to save your money for your next project. Same concept applies for the garage- but I would probably leave the garage as-is since most people use it for storage anyway, so it doesn't need to be fancy.

Also, I'm not sure what your plans are for your color scheme, but keep in mind that grey is the new beige and quartz is the new granite! I'm not even kidding- almost all the buyers I work with are looking for a white kitchen with gray countertops (these colors make the space feel more light and airy).

Hope this helps!

-Jasmine

Peter MacKercher · Answer

You can use this http://www.homedepot.com/p/BEHR-Premium-1-gal-902-Slate-Gray-1-Part-Epoxy-Concrete-and-Garage-Floor-Paint-90201/100113293?N=5yc1vZbd13.

Paint is way cheaper than carpet.

Robert Obniski · Answer

@Peter MacKercher

Thanks for the response. Now, when you say paint the floor are you suggesting like an epoxy type paint? How is that compare to carpet price wise?

Peter MacKercher · Answer

Finished basement and garages all though there nice and help it sell. It does not add much for appraised value.

I some time finish basements. If i can do it quickly and cheaply. I would look into painting the floor or carpet for the floor i would not spend a lot of money on the flooring in a basment.