Newby trying his first total house renovation

[Brian Garrett]

Hello everyone,

I am a newbie to the whole real estate investment world and am looking to move on my first property if possible. I have been reading books and I have been studying everything I can. But due to some issues, my mom is being kicked out of her home soon due to the homeowner selling the home (she is renting). I am looking to buy the home myself to help my mom out and use it as a learning experience for my first investment and keep my mom as a tenant. 

With that being said, I am looking for some insight and help in developing my budget and plan for this project. I know the house needs alot of work, so I was hoping to make a rehab budget and then develop a rehab cost number which I will use to develop a bid to see if I can get the house at a reduced price since it needs work. I was able to get an inspection done and from that I know the main work needed is as follow:

1. Under house crawlspace:
   • some foundation pillars or crumbling and need replacement.
   • Major leaks under main bath causing wood beams deterioration.
     • Multiple minor leaks to wood beams in different areas as well.
   • HVAC duct work is leaking at connections. HVAC duct work insulation is also deteriorated.
     • No vapor barriers installed either
   • Some fungi/mold growth noted
2. Plumbing
   • Multiple small leaks under sinks and from bathtub and toilets.
   • House has Polybutylene plastic plumbing which is dangerous
   • Main shut off valve is damaged
3. Electical
   • Some small exposed wiring and bad splicing.
   • Whole house has no GFCI's or grounding outlets
4. Interior
   • Moisture spots on ceiling
5. Exterior
   • Lose Vinyl Siding
   • Door Jams and Window trim have moisture damage
   • Driveway need replacement
6. Roofing
   • Minor leaks noted in attic
     • Recommended to replace roof covering, but not whole roof
     • Some fungi growth noted in roof
     • So some of the question I am trying to tackle with this work is:
       

How much should I budget for the main issues listed? (I just don't know if this could be 60,000 or 100,000 as I am completely new, I know it can not be exact and contractors will not help me unless I purchase the property. Knowing a ball park figure can help me pick a price I will see if the homeowner will accept because there is alot of needed work)

What kind of project planning should I do to make this an efficient project and reduce cost but keep quality? Like should I start at the roof and go down, or start under the house and go up? Will all floors need replacement if I take them all up to work under the house or can a reuse the floors (they are hardwood floor, old and need some refinishing)

Of the steps needed, what are the most DIY friendly for a newbie like me? I live out of town but I can come into town for a week or 2 to complete some of the easier jobs. Like should flooring be simple enough?

Is there any sources I am missing where I can read to get such info as well?

Any help is greatly appreciated,

Brian

[Bruce Woodruff]

1) You need a lot of foundation work, better allow $5k. New Ducting $1-2k. Dry up the leaks and your mold should go away. Check grading around house and downspouts.

2) A replumb should run about $6k depending on SF. What are the sewer lines, Cast iron? Add $7k.

3) If you have ancient wiring you'll need to replace it all. If it is ok, just no grounds, you can just install GFIs at the beginning of each run

4 & 6) You need a new roof. Period. $9kish depending on wood damage.

5) Hard to say, windows and doors may be fixable by replacing trim and recaulking. Don't know how long the driveway is. Throw $15k at this

And what about the kitchen and baths? Are they fine or trashed? Floors? Finish carpentry? Tile? Paint?

This sounds like way more than $100k. And no, doing this by yourself on a weekend or two is not gonna happen. Even if you lived in town, this is too much for a newbie.

Good for you for taking care of your Mom....