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Updated about 6 years ago on . Most recent reply

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Ryne Tedford
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Advice needed for house repair and potential flip

Ryne Tedford
Posted

Hi everyone!

  Thank you in advance for taking the time to read and any responses. 

So a long story short, I bought a home in August and it has drainage issues in the basement.  I have gotten quotes to get it fixed for no less than $7k. Here's where I could use some advice...

 I can fix the basement on my own (I am a contractor and have some experience with basement perimeter drains) for around $1,000. The yard also needs to be fixed by adding retaining walls, french drains, and regrading the landscape away from the house (house has steep 20ft hill about 20 ft behind it.) The landscaping work will also cost me little to nothing with the help of friends who have the equipment. My wife and I plan to sell ASAP once this is all fixed. Unfortunately we got too excited with our first home purchase and realized it really doesn't have what we wanted in the first place. 

Now, hiring a certified basement tech will give me a 100% transferrable lifetime warranty which I know would be a HUGE selling point for potential buyers. I have also been trying to do my research on CT reality and seeing what upgrades can help improve my resale value (hoping to come close to breaking even after a new roof, and adding a countertop into an existing wall in the kitchen). 

Im having a hard time throwing down 7k into a basement system when I plan on leaving no later than spring 2020. Pros being that it has a transferrable warranty and which will help my turnaround on selling, cons being its 7k into a home im leaving. Would it be worth it add the system to the flip? or should I do it myself saving thousands....

Only concern I have with doing it myself is a. Im a carpenter, not a drainage expert and I'd hate to unintentionally make an issue for the next buyer down the road (im a big believer in karma). b, taking time off of work when this is already a slow season for me and money is somewhat tight. 

What are your thoughts? Anything that I am overlooking or not looking into enough? Does anyone think Im going about this in the wrong way? 

Thank you so much!

Most Popular Reply

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Lynnette E.
  • Rental Property Investor
  • Tennessee
2,400
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Lynnette E.
  • Rental Property Investor
  • Tennessee
Replied

Have 2 or 3 certified techs come out and look at the project.  They will each have a plan, and probably different plans.  Ask questions.  Then you will know exactly what they would do to correct the problem.  

Then you will be able to make a decision about whether you can do that and also the cost difference of your time and material vs. theirs.  And if its slow at work, but you still have work, maybe do this on the weekend if you decide to do it yourself.  

As far as disclosure, yes you do need to when you sell. But if you are handling this as a flip, just putting it in a list...Upgrades to the house since its purchase on August 2018:  paint living room, paint master bathroom, new kitchen counter, terracing yard with retaining walls, planting XX bushes and plants, adding drains to basement and yard, replacing living room lights, …

The idea is to honestly market the house, identify the work, but do not focus on it.  And calling it an upgrade is viewed as more positive than just saying we did this.

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