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10 Items To Note On A Property’s Exterior

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What you can do quickly Estimate accurately Rehabilitation is one of the skills that every real estate investor should have. When a potential transaction occurs, someone else is often right next to you, so you need to be able to proceed with your analysis quickly. Real deals don’t stay in the market for long, so often you need to go to the property, estimate the required repairs and process the offer within 24 hours.

So the secret is to be quick and at the same time not miss anything. And the key to not missing anything is to have a checklist listing the main components you need to see. My checklist has evolved from many sources over the years and has been used in the field. Today, it’s a simple spreadsheet listing the components outlined below and a box to check if repairs are needed. Next to that box is a space for a price quote, then another box for comments.

yes no cost Comment Comment
roof

that’s it. Simple. Once you’re done, just add up the repair cost estimates listed and you’ll have a total rehabilitation cost.

In this post, I’d like to review the items on the checklist to look up when looking out of the property. You can then use them to create your own checklist that suits you. This list is for single-family homes, but you can easily modify it to fit any type of property and use it for different property types.

Related: How to accurately estimate the cost of a rental property in 3 easy steps

10 Precautions Regarding Possible Rehabilitation Appearance

Status

The first thing you see when you go to a property is that situation. What about the state of other properties around it? How is the cityscape? Is the property the largest or smallest in the neighborhood? These aren’t always something I can fix, but they will help me later when indemnifying or pricing the property.

Foundation

Take a walk around the property, looking at the foundation from the ground to about a few feet above it. Did you notice the cracks? If so, how big and how big? Small cracks in an old house may only be a natural calm, but large cracks may mean a problem. If you see large cracks, make a note to look inside for other cracks on the walls or floor. See also water and water paths. Is the water collected near the foundation or directed away from the structure? Look closely, as Foundation issues can reach thousands of dollars and can be a trading killer. On the other hand, if the underlying problems are fixable, they can offer considerable potential. If you’re not sure, seek expert advice or overestimate.

roof

Walk around again and look up now. Do this as a separate step so you don’t miss anything. Look at shingles. Are they decent shapes? What about the trees around them? Is there anything rotten? Take a closer look at the number of roof layers. In other words, is there a layer above the shingles layer? In that case, tear-off may be required. Replacing a small roof will probably cost about $ 5,000, but a large house can cost more than $ 10,000. Most tend to be in the middle of these numbers.

Exterior

Walk three times. The obvious question here is about the painting process. You need it? See also the material. Is it made of brick, wood, stucco, or siding? The tree obviously rots. The siding will fall and the plaster will crack. Is there anything that needs to be replaced? Poke a little. Do you give a tree? Will the cracks grow or come off? If so, look for evidence of termites, flooding or worse.

window

Check all windows. Are they drawn closed? Are they old single-pane windows? If so, you may need to replace them. Is there a storm window? If no, we recommend installing some. Replacement windows can run between $ 120 and $ 200 or more per window, depending on the style and type you need.

HVAC

First, make sure the unit has not been stolen. Next, estimate the age. For older units, we recommend that you consider replacing them. If this is not the case, we recommend that you install a cage or other security device to prevent it from disappearing. HVAC equipment is becoming more and more expensive due to government obligations, so keep it up to date in response to rising costs.

Outer garden / landscaping

Take a general look at gardens and landscaping. Is the yard sloping away from the site as it should be, or is there a runoff that runs down into the basement when it rains? Estimate where your sewers and water lines are, and look for depressions in the ground, or unusually green or damp areas. If you see any of these, the waterline may be leaking or the sewer pipe may have collapsed. Investigate further. Are there any wood limbs that need to be logged? A bush that needs trimming? Does a little landscaping strengthen the place? Be sure to budget, as landscaping and the effort involved can quickly add up.

Landscaping

Deck and fencing

Do you have fences or decks? If so, does it need to be repaired or replaced? If not, do I need to put one in to increase its value and appeal?

Related: How to estimate rehab costs without a construction background

Utility meter

Make sure they are in place and turned on. If they are locked, you need to ask yourself why and budget a little higher for repairs to unlock and turn them on.

other

Of course, there are countless other items that you will notice when you look at the appearance of the property you want to comment on, such as the condition of the driveway or the hut. For these types, use the “Other” category of catch-alls.

Use the checklist every time you inspect a property. In fact, you never know, so always bring some blank stuff with you. Also, take the time to inspect, even if you have an owner or someone else. Distracting and missing something can cost thousands of dollars.

Next time I’ll poke inside.

Investor: What would you like to add to this list?

Please let me know by leaving a comment!

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