Property Rehab: Fixer-Upper and Construction Talk

Home renovation seems to be all about bleeding out your bank account. But there are techniques for slowing down the hemorrhaging.
These are techniques that homeowners have used for years. Some are so obvious, you wonder how you ever could have missed them. Some are painful. But don't kill the messenger. I'm just here to count down the...

Top 10 Methods of Saving Money on Remodeling

Let's start with the money and then work our way down to number one!
10. Reduce Need for Second Mortgages, Personal Loans, and Credit

How do you remove old worn out stinky nasty carpet? We have all been in that situation and it is something we can do ourselves without breaking our backs.

This question is for all of us who bought a new house that has that crazy red shag carpet circa 1976. Which pretty much means anyone who’s ever bought a house in Pittsburgh’s city limits (I’m allowed to make fun of my own city’s styling flaws).

Removing carpet isn't hard and I have a handful of really awesome tips to share with you along with a detailed step-by-step checklist and video of this entire process. Yes, I love my DIY friends that much.

Start by assembling your supplies. Here’s a list to help you out:

Utility knife ($10.98)
Duck tape ($3.47)
Gloves ($5.00)

FHA 203k Renovation (Rehab) Loan is a relatively unknown program to many home buyers. Even though it has been around for a while, not too many people have even heard of it. There is a very simple reason - only about 1% of all FHA lenders are qualified to write the full 203k mortgages. Since it partially is a true construction loan, not too many lenders have been wanting to deal with it.

A home inspection is warranted before buying a home and the intention is to assess whether there is any revision that is required on the negotiated deal value. It is essentially an exercise performed to do a more accurate value assessment, and thus allowing a more informed decision on part of the buyer.

Most home inspectors tend to ignore the minor defects as it causes an unnecessary deviation of attention from more important defects, which would lead the buyer to spend a substantial sum of money for repairs. The exercise is crucial as it could have material implications on the deal value and in some case it also turns out to be a deal breaker. The home inspection findings are usually very definitive and if the buyer and seller remain committed to the deal these can be resolved.

Even though the current homeowner may greatly appreciate the improvement, a buyer could be unimpressed and unwilling to factor the upgrade into the purchase price. Homeowners, therefore, need to be careful with how they choose to spend their money if they are expecting the investment to pay off. Here are six things you think add value to your home, but really don't.

1. Swimming Pools

1. Over-the-Top Improvements
Before you invest tons of money in an elaborate full-house renovation project, consider what the competing properties in your neighborhood have to offer. While you want your house to stand out from the competition, you shouldn't make unwarranted upgrades that greatly exceed other properties in the area. Not only will you end up losing money, but you may even scare off potential buyers.

Find out how similarly priced homes in your neighborhood measure up, and make improvements based on your specific marketplace

2. A Swimming Pool

Hey Dg'ers trying to determine the right size generator i would need to do simple home repairs ( enough to run a few power drills, space heaters, etc). Most online blogs say that a 5500 watt generator could power an average size home. Im just trying to make sure I don't spend too much or too little.

I get asked the question all the time on remodeling properties and what to do to maximize the return on investment in a project. Do I spend time in the kitchens? Do I spend time in the Bathrooms? Do I spend time and money on the inside or outside of the house? All great questions.
I found a really cool article that gives some great advice relating to this. It also gives some numbers to support the claims given during the article. Take this and use it to maximize your return on your investment and I can’t wait to hear more success stories.
Report: Exterior Remodeling Offers Largest Return on Investment
Real Estate News
Jan 21, 2014
By: Rachel Stults

Want to know where to put your money in doing a rehab project? Aside from obvious needs presented by the property, not all remodeling, replacement, or renovation projects produce the same return when selling the property. According to Remodeling Magazine, here are the ten best return rates as included in their 2014 report:

1) Front Door Replacement (Steel) 96.6%
2) Deck Addition/Upgrade 87.4%
3) Attic Bedroom Addition 84.3%
4) Garage Door Replacement 83.7%
5) Minor Kitchen Remodel 82.7%
6) Replacement Windows (Vinyl/Wood) 78.7%/79.3%
7) Siding Replacement 78.2%
Basement Remodel 77.6%
9) Major Kitchen Remodel 74.2%
10)Bathroom Remodel 72.5%

Tis the season!
For Frozen Pipes!
I found a really cool article that talks about some things to do to with frozen pipes, and more importantly how to prevent them. I hope this helps. With foreclosures, vacant houses, power turned off, and the cold weather, it makes for a perfect storm to create a pretty big problem for investors. But it can be worked with, and can be fixed, and also can be prevented. Hope you enjoy this article like I did.
More than just a minor inconvenience, frozen pipes are destructive and disruptive. That’s because the frozen water doesn’t just stop flowing through pipes – it actually expands and can cause pipes to crack or burst.