Major expenses in a Rehab, foundation.

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Major expenses in a Rehab

Part 1 Foundations

If you are just starting out in your investing there are a few major components to look out for when estimating repairs for your deals. Foundations, A/C, Roofs and Termites are the four things that can add up big if you do not figure them into your estimates. Although foundations are not as expensive as many may think, they can really add up. The lowest going rate at $125 a pier may not seem like much but when you need 15 or so you can see how it can be essential to understand how to look for these problems. Cracks in the sheetrock are a very good sign, but some owners may just fill the cracks as it is a very inexpensive fix. Look for signs of cracks along the bricks outside, where it seems the mortar has already been repaired previously, or vertical cracks up the slab. Stand back away from the house, are the veneer or boards straight or do they lean to one side? Being able to spot the signs of a foundation needing repair is essential, as you can use that in your negotiations on the price with the seller. Investors are the most likely person to buy a home with these problems, and most sellers know this, so it makes negotiation easier.

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