Renovations

Renovations are arguably the scariest part of analyzing any deal. Also the most exciting. We find it’s the renovation that most often creates the hesitancy that most investors feel and often causes them to walk away from what could be a really great deal. 
In the competitive markets that we play in nowadays, it’s all the more important to create a proper accurate renovation budget. That being said, remember you always make your money when you buy. Never lower your budget by thinking you can do something cheaper just to make the numbers work and to justify the purchase. This is never favorable.
Below is a simple guide to help you during your property walkthroughs to make sure you have accounted for the major big-ticket items. In the properties that we buy, more often than not we aren’t able to put in a home inspection clause. We have to buy only after seeing it from a quick walkthrough. This checklist helps us document our notes and come back to our office to put a detailed scope together. Now there isn’t a perfect science when the element of surprise exists. We find all kinds of surprises in the homes that we buy. But if we make sure the larger ticket items have been accounted for then the surprises are never as drastic. Plus we always include a reasonable contingency which I advise everyone to do as well! 
With this being said, if you can always rely on the advice from professionals in your particular area. Labour and material costs can vary from city to city. Not just that but being able to get a remediation quote from a reputable contractor as part of your due diligence is always the most favorable. That way there is no guessing! With that being said, however, it is our responsibility as investors to make sure we are crossing our T’s and dotting our I’s. So do your homework!
If you need any help or advice feel free to book a free 15min consultation with one of our team members and we’d be happy to assist!
Happy Investing!

Are Permits and Plans Required? Do we need to go through the committee of adjustments? Do we need building permits or is it mainly cosmetic? Do we need ESA?

Any Structural/ Engineering Required? Are we removing walls? Do we need to add footings? Any leaning?

Is Pest Control/Abatement needed?  Are there any signs of cockroaches, bed bugs, mold, asbestos, termites

Signs of House Leveling and Foundation Repair? How level are the floors and how square are the doorways?

Landscaping. What can we do to increase the curb appeal?

Demo. What do we need to remove, and how many bins do we think it will take (always add 1 extra bin)

Roof/Soffit/Fascia. Are the shingles curled? How much life do we think is left? Are the eaves troughs leaky or look old? Are the downspouts far enough away from the property?

Door and Windows. How old are the windows? Should they be replaced? If so how many windows? What about the front and back door?

Siding/ Brickwork. Does the brickwork need to be pointed? What condition is the siding in?

Garage/ Garage. Doors How many garage doors? Mandoor? Window? Paint?

Framing/ Subfloor. Are we removing walls and do we have to frame in some areas? Basement?

Plumbing. How are the plumbing fixtures? Check for galvanized plumbing and kitec plumbing.

Electrical. Are there any signs of knob and tube? Aluminum wiring? Are the plugs grounded? Do we need to update the panel/ add a second panel?

HVAC. How old is the furnace? Is there a boiler or other type? Is there ac? How old?

Insulation. How does the attic insulation look? Is it sufficient? Are the exterior walls cold?

Drywall. Any areas that need drywall replacement?

Floors Installed. Do we need new floors and tile anywhere?

Cabinetry and backsplash New kitchen? DON’T FORGET VANITIES 🙂 do we need backsplash? Interior doors, Trim, Millwork Trim and baseboard what condition are they in? how are the interior doors? What about door hinges?

Paint. Ceilings? Trim? Walls? Exterior?

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