When rehabbing an investment property, there are certain jobs that you can do yourself, and others that it is recommended that you hire out to a licensed contractor. Just the fact that these professionals are licensed means that they are insured and certified, as there are risks associated with the job itself, or with the end product. You want to make sure that the property is safe and will remain safe for you or for the buyers!
Most licensed contractors have completed a minimum of two years of specialized training with an accredited institution. Most have also trained side-by-side as an apprentice with a trade professional, learning from experience and not just from textbooks.
At the very least, the following ten jobs should be contracted, or completed by a licensed professional:
1. Electrical work (running electrical lines, installing fuse boxes, guaranteeing electrical safety)
3. Removal of hazardous materials (for example, asbestos or lead paint)
4. Septic system installation and upgrades
5. Removal of large or dangerous trees threatening the property
6. Major plumbing work
7. Foundation work
8. Other major structural projects (rebuilding a load-bearing wall or beam, for example)
9. Termite inspection and treatment
10. Chimney repair / cleaning (often a certificate is required by your insurance company)
Always consider that when a buyer has an inspection done of the property, he or she will be able to move forward with more confidence if all work has been done up to code by a licensed professional. Make sure that you keep all receipts, as many contractors offer a lifetime or limited guarantee on their workmanship.
Keeping this in mind, you may want to look specifically at these 10 things when you are considering an investment property, particularly if you are not a licensed contractor. If you can look at a property and know that none of these 10 things need major overhaul or work, then it may be possible that you will be able to do the bulk of the work yourself. This should give you some confidence that the property you are looking into can be fixed and flipped at a more reasonable cost, and with less logistical coordination. Sometimes, just a well-versed handyman is all you need to make the necessary tweaks!
Another way to look at this is that if you are looking to make property rehab, and fixing and flipping a primary source of income, there are some skills that you may wish to acquire to be able to take on more jobs yourself.
In either scenario, if you are considering a property rehab project and need funding, Center Street Lending can make it happen. We lend in CA, AZ, CO, UT, TX, FL & NC, up to 80% of the property purchase price as well as 80% of your anticipated rehab costs. Give us a call today at 949.244.1090, or request a no-obligation quote online. We use a simple, streamlined process, and can fund your project in as little as 24-hours!
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.