You go into this knowing that there will be repairs and renovations, but when you’re flipping for resale, the last thing you want to do is spend so much on repairs that you wipe out your profit.
Even when you’re faced with these notoriously expensive home repairs, you can cut costs without sacrificing safety or quality.
Foundation issues are not something you want to find in your flip, but it’s not uncommon for it to get past your inspector and land in your financial lap. These need to be addressed, or else it could compromise the integrity of the entire structure.
Exposure to water over time can weaken the foundation, causing the foundation walls to crack, settle, and create structural issues throughout the home. The cost of repairing and sealing a damaged foundation can start at $10,000 and go as high as $40,000.
A solid foundation is essential to a safe home, so this type of repair should be done by a professional, and should address underlying issues. It’s not enough to seal cracks; water is getting in, and the situation has to be dealt with. This may require installing a French drain, adding braces, or overhauling the gutters.
The roof is the home’s first line of defense against moisture. Most roofs last about 15 to 20 years, so it can be common for the roof on a flip to need repair or replacement.
The cost of replacing a roof runs between $5,000 and $15,000, depending on the size of the house and what materials you use. While this isn’t a feature of the house that you should skimp on, there are some strategies that can help you save a little money on the process.
Get several estimates, and keep in mind that the lowest offer is not necessarily the best. Work with an experienced contractor, and check references.
It may cost less to have your roof done in the off-season –at the end of winter or in the fall. When business is slow and your schedule is flexible, contractors may be willing to negotiate.
Another way to cut costs is to handle some of the unskilled work yourself. You might offer to store the materials on site for the contractor or take over cleanup and dumping, both common additions to the cost of re-roofing.
Once again, water is the culprit that drives most damage to a home’s siding. It may also be necessary to repair or replace siding just due to age and weathering. Again depending on materials and the size of the home, siding replacement can cost well over $10,000.
Saving costs starts with getting multiple quotes. There can be inventory clearances and specials that save you a pretty penny on materials.
Be flexible with regard to materials as well. Take into consideration the surrounding neighborhood, and model your choice accordingly. Wood siding is more expensive and often less durable than vinyl or aluminum, but weigh the aesthetic cost as well, and consider its contribution to the home’s overall value.
Need financing for all these repairs? Let Patch of Land be your partner for your next project! For more information, look through the steps on how to get started or download a FREE copy of our Borrower Handbook.