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Expensive Things That Will Kill Your Rehab Profits!
Nobody likes surprises when rehabbing. They are usually expensive. There are a few gotchas in particular that will hurt your backend profits. Be aware of these when doing your inspections and rehab budgets, and your project will not resemble an overly dramatic rehab show on TV! The following are some things to pay particular attention to when inspecting your projects: Septic Systems Its imperative to find out if your potential project is on public or private water. An outdated septic or a well that does not “perc” (produce sufficient water pressure or flow per minute) will derail your project quickly. Redrilling a well or replacing a septic system could cost $10,000-$20,000 or more. Its a good idea to have the septic system inspected before you even purchase the house. These inspections still might not be sufficient to satisfy the local municipality though (ask me how I know). They might require you to bring the system up to current code in order to issue you a building permit for your project, whether or not you are adding an addition into the house, Its best to check with the local environmental protection agency to see what records they have on the system. If it was recently repaired or upgraded, you will probably be fine. If you are investing in Maryland, be aware that if you are installing a new septic, they will require you to put in a BAT (Best Available Technologies) system consisting of a double tank and a pump. These systems can be twice the cost of the older versions. The purpose of the BAT system is to reduce...Before & After
Check out RehabberPro’s latest before and after. See our “Success Story” blog for the project scope, challenges and products our company used to complete this home. The following rehabs are from April 2013-October 2013
- 2603 Beechland Avenue, Silver Springs, MD
- 2603 Main Street, Baltimore, MD
- 2603 Beechland Avenue, Bowie, MD
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