Putting Together a Rehab Plan

I have been busy the last couple days getting things in place to rehab the property. I have gotten contractors scheduled to walk the house. Downloaded all the necessary paperwork to pull permits. Got all my utility companies' information written down so I can have gas and water turned on (electric is already on). I have read many blog posts on how to get estimates done and what to ask and expect. Here's a few things I learned in my research.

Get detailed estimates: If the contractor can't give you a break down on what the rehab a going to cost, then how does he know his numbers are correct? If they refuse, don't use them or ask them who covers the cost if the job runs over budget.

Walk the house with a plan: Walking the house is great with a contractor, but have a plan in place. If you don't have a scope of work before you walk the contractor through the house, how are you sure you didn't miss anything. Preplanning will save you money in the long run.

Control all your costs: My plan is to buy all the materials. I will get labor only estimates done of the rehab. This way I get what I want at the price I want as far as materials go. The only way this might change is if the contractor has a better cost of materials. It would be something that doesn't affect the appearance of the house like drywall or insulation. This also saves me having to front costs to buy materials.

Don't make the final payment without a signed lien waver: A lien waver states that the contractor has been paid in full and cannot put a mechanic's lien on the property. Sure you paid them and sure they are done with the job, but if this document isn't in place, it could bite you in the ass later if you are dealing with a less than honest contractor.

I'm sure other things will be learned as the rehab takes place, but I'm always trying to minimize my risk when it comes to my money.