Rehabilitating a Property: A Golden Opportunity


An old house doesn’t have to stay in its faded and beaten-up condition. If you are the new owner, you can do your best to rehabilitate it. A good rehabilitation project should be able to bring back a house that has seen better days. Once it is done, you can then use it for a variety of purposes like renting it out, selling it, or even living in it. To ensure its success, here are some tips to help out.

Know The Difference

When it comes to doing work on old houses, several terms can be used. A lot of people don’t know the differences between them. The most common one is renovation. The idea behind it is to add something or improve but only to particular parts of a house. For example, there are kitchen renovations that add various features to the kitchen like new plumbing and more. It is also much more cosmetic in focus. Renovations focus on how the place looks and you’ll often see many renovations also working on decorations and style.

On the other end, there is also preservation or restoration. Some people buy old homes to keep them the way they are. They want the vintage experience or at the very least, make it look like the day it was first made. This can be expensive in its own right.

A less common approach is full rehabilitation. This is when you make a home fully inhabitable and update everything to modern standards. This usually involves replacing older items and materials. Think of it as a more involved renovation project that covers the entire home.

Get Some Solid Financing


Knowing what you are aiming for allows you to start getting the necessary funds. Some people might think of deciding on what to do before getting financing but it is a lot better to do your rehab planning after you figure out how much money you have to work with.

There are several sources of funds you can tap for your house rehabilitation project. One of the common sources of funding is personal savings. Some people buy a house to rehabilitate it and budgeted ahead of the purchase so that when they bought it, they immediately had the money to fix it up. Another common source is loans. There are public and private lenders for real estate loans out there and they can give you the money to pay for all the work. However, you do have to pay the loan back so it will require some planning.

Your financing choice can also be decided by the reason you are rehabilitating the house. If you are hoping to live in it, doing small repairs and fixes over a long period as your funds allow can be better. If you plan to sell it off as quickly as possible, a loan might be better. You can pay off the loan once the house sells and have a bit of profit.

Have A Plan Of What You Want To Do

With the cash in hand, you should then start making plans. Knowing how much you can afford should influence your spending decisions. The rehab project plans will have several key components. You’ll need to have an inspector come in and look over the house to see what needs to be done. They will list down what needs fixing. As part of that, you should ask which ones are the highest priority, With an idea of what to do, it is time to write up what changes and fixes can fit into your budget. For example, while you might think some good hardwood flooring is necessary, the leaks in the roof have higher priority.

Meet With Your Contractor

Now that you have a checklist of what you will be fixing, you will have to talk to your contractor. A good contractor can help correct your budgeting and tell you about what to expect from the rehabilitation efforts. While some people might think of doing all the work themselves, that is not recommended. Unless you are a skilled carpenter and all-around handyman, a contractor is a better option. They know what needs to be done and often have a full crew helping them.

Rehabilitating a home can be a challenge. You will likely put a lot of sweat and funds into it. But if you have a clear goal for your project, then you should be able to get great results. The tips above should ensure that the target house is going to look great.

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