My First Rehab Project

[Teresa Keith]

Hello, BP Investors!

I have a great mentor who I met from right here on BP, and he hired me to project manage a duplex renovation for future rentals. It was purchased by a foreign investor in Hong Kong who asked my investor/mentor to flip the property for her. He told her that I (me) will be project managing the renovation (yay).

The duplex is located in a lower income area, and it was vandiliized. So far today we did a walk-through and I got an inventory of what needs to be done to make it a decent rental. The next thing I will be doing is creating a project plan and budget spread over a 12 week period. I will come back here and periodically give you all an update on how I'm doing each week.

Here is a brief summary of what I gathered from the walk-through (applies to both units unless specified):

Get paint inspected for lead on the exterior, Repurpose hardwood floors, Replace all windows then board them up, Replace back door (unit 1), Full rehab in bathroom, Fix electrical panel in kitchen, Gut all walls and floor in kitchen down to the studs (unit 2), Repair hole in bedroom ceiling (unit 2), Add appliances and countertops, Replace hot water heaters, Rewire outlets, Add air conditioning unit, Fix plumbing in kitchen and bathroom, Paint entire house inside/out, Work on Landscape in the back, clean roof and gutters, add down spouts for gutters, add gas meters, and gut and redo the small balcony off the kitchen.

I would appreciate it very much if you seasoned investors will give me your input, suggestions/advice, and comments. You are more than welcome to chime in, getting different perspectives will help me out a lot.

Thanks!

[Engelo Rumora]

@Teresa Keith

Hi Teresa,

When rehabbing in lower income areas they key is to get in and out as quickly as possible. Make sure you have all trades ready to go before rehab start and do your best to make the outside of the house look like there is no work going on (For example: Don't leave any trash in the front yard over night)

Also, don't overcapitalize on the work.

I like the saying "Nothing sexy, nothing flash just very fundamental"

Most of the tenants will not look after the property and a paint and new carpet will be needed after ever vacancy.

We bought and rehabbed quite a few in rougher areas but had great systems in place to make it work for everyone.

Thanks and have a great day.