What steps would you follow to do a Rehab on a rental property you have just purchase

[Clint Jusino]

Hello BP Fam! I'm under contract on my 2nd rental property. This will be my first rehab project and I plan to BRRR this rental property. I would like to know if anyone has experience with this and what steps would you take from start to finish. For example, get electrical up to date first since its a 1963-style ranch house. The bathroom and kitchen are 1960s style and I plan to get some contractors to demo/rehab it to make it more modern. I'm guessing around 30-40k in rehab. Also does anyone know of any private investors in the Dallas area? A coworker of mine maybe interested but I like to have backup just in case he bails on me when it's time to actually lend me the money. The property is in Desoto, TX, and would be happy to show to anyone who has experience with Rehabs. It also has a detached garage roughly 300sq ft that I plan to turn into an ADU after I do a cash-out refi to have the funds to fix it up (estimating 40-50k). Thank you everyone!

Steps I was thinking of following:

1) Get electrical up to code since its all 2 prong outlets and the panel is way outdated.

2) painting of the whole house

3) Demo kitchen and bathroom

4) Renovate kitchen/bathroom

5) install new floors

6) input new appliances

7) input new light fixtures

8) etc.

[Bruce Woodruff]

You'll need a permit and maybe some drawings (?). And like @Dan M. said, painting will come later - should be last thing actually. Get the floors and trim done, then let the painters do their thing.

Are you moving/deleting any walls? Structural? This is a good time to open up the place and make it 'great room'.

IMO, this is way more than $40k Rehab cost...you're almost doing a complete 'to-the-studs' remodel here.....Hint - you'll need to run a ground to every outlet and switch, plus adding a lot of outlet locations and in some rooms it will be easier to just demo the drywall. The electrical alone will cost you $20k...

Don't coat the old sewer line, just do all new...I never had a great experience with the re-coats, better to just run new ABS and be done with it.

You're only allowing $125 SF for the ADU....I know it's Texas but I doubt that gets 'er done.

PM me if you need more help, I just think you're a little off on your budget.