A big part of a rehab deal is , well, the deal. This can take time to put together depending on each parties needs. Sometimes it's as easy as purchasing a listed property and starting the work immediately (and praying)
Sometimes you have to bug an owner for a very, very long time to sell you the home and move on to a nice condo for their retirement years (and pray).
Sometimes, you can agree to do the rehab and sell the property for the owner... spliting the proceeds at time of sale. This does not require purchasing the home (and pray).
That's right... pray for multiple offers when you finally get the house on the market.
So... where are we now? Well, we are in the process of nailing down the final details of the agreement with the seller.
Jon and I are also taking time this week to meet with several sub-contractors for bids on major mechanicals. We will have a whole new HVAC system, new windows through out, plumbing through out, electrical panel and meter, outlets and cans... I think that's it. Maybe a roof, but it may be in great shape.
Then we estimate the kitchen, two baths, drywall and other finishing work we will do ourselves. We should have a budget in place for all the things we want to do by the end of the week.
After this, I will re-check the numbers with a realistic market value for the finished home. We start cutting from there. The house has great features already in it's design... but we have to make sure our improvements do not out-pace the pocketbook of buyers who will typically shop the area for a home.
On that note, we discussed one of the most exciting parts... improving the floorplan. We decided on a new master suite and bath design, second bath placement, how to open up the kitchen, use of the second floor, and placement of canned lighting.
The work has to be terrific to match the existing integrity of the home. There are three huge mistakes rehabbers make in Chicago homes: poor craftmanship, bad layouts and cheap finishes/fixtures. We are taking a good amount of time planning layout to ensure buyers will have the fewest objections to our home versus the competetion. As for craftmanship and taste... fahgettaboutit.