Working toward restoring an old home to its former glory is a wonderful use for a rehab loan. There are some people who just get enamored with the thought of fixing up an old home. They were built so well and have so many stories to tell. Many are totally unique and not like any other home. Before you begin, think about what you really want in a home. Is quirkiness something that you love? Or will those aspects that originally struck you as charming eventually drive you mad? Do not automatically think that you could change anything to fit your vision. Some things like layout or specific design details could be very costly or impossible to update.
Document Your Work So You Can Turn a Profit on Your Flip Loan
Purchasing a home seems expensive enough, especially when utilizing a rehab loan, but it is very important not to cut corners. A bit of money spent up front could save you thousands in the long run, especially when dealing with an older home. A home inspection is a crucial piece. You hope to spend your money vamping up the space, not replacing 100 year old pipes and ancient electrical systems. If the house has major issues, it’s best to know right away so you can plan your budget accordingly or back out altogether.
Two more professionals you should consider hiring are a general contractor and a designer. Even if you hope to do some of the work yourself, the contractor can give you a good idea of costs and scope of work even before you buy and then be there to coordinate the project along the way. A designer can help save money because you will not be spending money twice by buying a couch that is too big for the space or choosing horrible paint colors.
Work as smart as you can, do research on materials and the professionals you hire. Choose energy efficient and environmentally safe components as often as you can. Also document everything. Keep a binder with tons of pictures, receipts, and permits. This will be important for a future sale or if you are using a flip loan and plan to sell right away. People will want to know all of the work that has been completed and that the work has been done right.
Contact LendingXpress to discuss the best loan for your next property investment.