7 home repairs you can't ignore

Homeowner procrastination can ruin a house. Don't let water, pests, faulty wiring, dirty chimneys or old appliances get the upper hand.By Liz Pulliam Weston

How to spot a shabby remodel
Top 10 mistakes of DIYers

Owning a house is expensive, which is why so many homeowners procrastinate on repairs. Real-estate agents have a euphemism for this condition: It's called "deferred maintenance."
Some fixes, however, should never be delayed. Ignoring these problems can result in much more expensive repairs later on -- or even injury and death.
Here's what home inspectors around the country say you should be on the lookout for:
A water leak -- anywhere
A stain on your ceiling. A toilet that rocks. White powdery stuff that grows on your bricks or foundation. A musty smell in your house.
Whatever the source, the culprit is water, and the damage can be severe.
"Water is probably the single most destructive force to a house," said inspector Jeff Del Guercio, owner of An Objective Inspection in Throop, Pa., and president of the local National Association of Home Inspectors chapter. "And a leak can go on for a long time without being noticed."
Left unchecked, leaks can lead to rot, dry rot, mold and termite infestations. Water can cause roofs to collapse, foundations to buckle and all manner of expensive repairs. What's more, water-related problems can get your home blackballed by insurance companies worried about the soaring number of mold-related claims nationwide. (See "Insurers keep a secret history of your home.")
The fix: Isn't it obvious? Stop the leak by any means necessary, repair the damage and take the required steps to make sure the problem doesn't reappear. Minor roof leaks, for example, can be patched with roof cement, but if your roof is aged and failing, you may need to have it replaced. That's expensive, but not as bad as replacing the trusses and underlying roof structure that can rot away if not protected.
Flickering lights
Do your lights dim when the fridge switches on or you crank up the microwave? You may have bad wiring or too many appliances hooked to one circuit. Either one can cause a fire.
"A lot of older homes have only one or two circuits in the kitchen," said inspector Jason Farrier of Elite Home Inspections in Phoenix. "People will update the kitchen but still have all the appliances running off those two circuits."
It's far safer, Farrier said, to have at least four circuits: two for countertop appliances, one to run the dishwasher and garbage disposal and another, dedicated line for the microwave.
Flickering lights also can be a sign of failing connections in aluminum wiring, a feature in homes built between 1965 and 1973.
The fix: You can try to distribute power-hungry appliances more evenly, by not running more than one at a time or by plugging some into another circuit. But the best fix is a cure: Get an electrician to upgrade your wiring, add more circuits, or both.
If you have aluminum wiring but can't afford to upgrade, the U.S. Consumer Product Safety Commission recommends making your wiring safer by using special crimp connectors rather than the usual twist-on style. For more information, see visit the commission's Web site (link at left under Related Sites) or consult a professional electrician.
Rodent incursions
If you hear the pitter patter of little rodent feet, don't turn up the stereo to drown them out. It's not just that rodents can carry disease and make a mess nesting in the tax records you've stored in the attic. Rats, mice and other vermin love to chew through insulation and wiring, Del Guercio said, and are suspects in many house fires.
The fix: Use traps and bait products or call in an exterminator. Mice droppings can carry the deadly Hantavirus, and rodents themselves can carry everything from salmonella to the plague, so professional help might be the wisest course.
Soaring fuel bills
If you're paying a lot more for gas or oil and there hasn't been a rate hike recently, Del Guercio said, the culprit could be problems with your furnace. This is more than a pocketbook issue, since poorly functioning systems can cause deadly carbon monoxide buildup in your home. The Consumer Product Safety Commission estimates about 200 people die annually from carbon monoxide exposure in the home, typically from malfunctioning heating systems.
The fix: Have your furnace professionally cleaned and inspected annually, including the flue. The cost is usually less than $100. Install UL-approved carbon monoxide detectors, which cost $25 to $50 each.
Peeling paint
Paint is like a home's skin. It's the first line of defense against incursions by water and pests. Water that seeps into wood can lead to rot. At the other extreme, unpainted wood can quickly get too dry and crack.
The fix: Scrape off the old paint, sand the surface smooth and apply a coat or two of fresh color. (Be cautious in homes built before 1978, since many still have lead paint. Dust and chips from such paint can cause irreversible brain damage in children and nerve damage in adults. Consider hiring professionals to test your home and remove any lead paint. Your local or state health department should be able to provide referrals to testing labs and contractors.)
Smoky chimney
Here's another way neglect can kill your family, since chimneys that aren't properly cleaned and maintained can catch fire. Creosote, a by-product of wood burning, can build up in the flue and ignite unless removed, said inspector Hy Naiditch of Accuspect Home Inspection Services in Chicago.
The fix: Get your chimney swept and inspected annually; the cost is about $100. (You can find certified chimney sweeps via the Chimney Safety Institute of America, link at left under Related Sites.) Use only seasoned wood, and build small, hot fires, rather than big smoky ones. Never burn trash, cardboard or wrapping paper in your fireplace.
Dirty, or missing, air conditioner filter
This is something Claude McGavic of Inspection Associates in Bradenton, Fla., sees way too often. Overloaded or missing filters allow dirt and dust to settle on the air conditioner's coils. Warm air passing over the coils causes condensation. What you get is mud—and a perfect medium for mold to grow and be blown all over the house.
Enough gunk can block air from getting into the system, McGavic said, causing it to catch fire. McGavic, president of the Home Inspectors Association of Florida, says many air conditioner failures can be traced to this simple lack of maintenance.
"With a $2 filter," McGavic says, "you can preserve a $6,000 air conditioning system."
The fix: Replace the filter once a month while the air conditioner is in use. Get your system checked annually.
Here are some other safety fixes you should consider:
Ground-fault circuit interrupters: These electrical outlets, with their distinctive red and black buttons, are designed to prevent deadly shocks. Outlets in bathrooms and those in kitchens within six feet of the sink should be replaced with GFCI outlets, said Naiditch, president of National Association of Home Inspectors Illinois chapter. "They're the best $7 you'll ever spend," Naiditch said. "They're a lifesaver." The exception: Don't put a refrigerator on a GFCI, Naiditch said. A fridge's normal on-and-off surges can trip the interrupter and leave you with an icebox full of rotting groceries.
Flexible gas connectors: Gas appliances installed more than 10 years ago may still have dangerous brass connectors that can fail, according to the safety commission, leading to fires or explosions. These should be replaced with an approved connector, typically stainless steel, Naiditch said. But don't move the appliance to inspect, since even a slight motion can cause the weak soldered connection to break. Have a professional appliance repairperson check and make any changes.
Garage door openers: Yours should have an electric eye that looks for obstructions and an automatic reverse mechanism to prevent someone from getting squashed.
Dryer vents: The lowly clothes dryer causes more than 15,000 fires every year, often caused by lint buildup in the duct that vents to the outside. Clean the ducts regularly and replace plastic ducts with metal versions.


How to spot a shabby remodel
On a 10-minute tour, it's easy to be blinded by new cabinets, floors and appliances. Real-estate pros offer tips on spotting shoddy work.Liz Pulliam Weston
The Victorian looked fabulous.
The owner had poured thousands of dollars into refinishing the hardwood floors, replastering the walls and updating the kitchen.
What she hadn't done was fix the home's foundation, floor joists or beams.
"As I entered the dining room, a hutch that was 20 feet away was shaking," said home inspector Rick Jarrett of First Home Inspections of Belmont, Ohio. Once he peered into the nearly inaccessible crawl space, Jarrett spotted the problem. "There was no understructure. It was all rotted from decay or termite damage."
Jarrett's inspection saved his client, a potential buyer, from having to spend tens of thousands of dollars excavating the foundation and repairing the damage.
If you're looking for a house, you've probably seen your share of ill-conceived rehabs: additions that stick out like sore thumbs, for example, or once-trendy materials that quickly became dated.
Harder to spot are the remodels that look great on the surface, but ignore or deliberately try to hide serious flaws. An incompetent, clueless or greedy remodeler can leave you with a house that's not only expensive to fix, but potentially dangerous for you and your family.
You’ll encounter lots more shabby remodeling if:
"Flippers" have descended on your market. Investors who buy homes in hopes of reselling them quickly may cut corners on rehabs to boost their potential profits.
Expert construction help is costly. The more expensive it is to hire skilled tradespeople, the more tempted homeowners may be to try to do it themselves -- even if they have no idea what they're doing.
Building code or licensing enforcement is lax. Substandard construction and incompetent contractors can flourish in areas where no one is checking up on remodelers.
An experienced home inspector can help you avoid trouble. But at $300 and up, inspections can get expensive. Here's what to look for so you can avoid the biggest money pits and winnow down your candidates before you hire an inspector.
Fundamentally unsoundUnless you have X-ray vision, you can't peer inside the walls, floors and ceilings to see if a home is fundamentally sound. You can look, however, at the home's surfaces for some real clues about what's going on underneath. Such as:
Big cracks in the walls, ceiling, floors or foundation. Any foundation crack should be cause for concern. Wide cracks elsewhere, or cracks radiating from the corners or windows and doors, may also be a sign of trouble. They can indicate foundation problems, or ongoing movement that could be expensive to fix. If everything looks good, Jarrett said, check the closets. Remodelers may patch everything else -- but forget about what's hidden there.
Sloping, bouncy or "spongy" floors. All homes settle over time, so a slight slope (or even a rather noticeable one on a very old home) shouldn't panic you. But sloping that's accompanied by significant, recent wall and ceiling cracking should be a concern. If the new ceramic tiles in the bathroom are already cracking, for example, you have good evidence of serious trouble. So, too, is any floor that feels less than solid under your feet.
Doors and windows that don't open freely. This could be due to settling, foundation problems or poor construction. In any case, it may indicate costly repairs are needed.
Wide open spaces. Remodelers often like to combine smaller rooms into larger spaces, but doing so can undermine the stability of an entire house if the remodeler unwittingly removes a structural or load-bearing wall. Sagging rooflines, ceilings or beams should be big red flags. Any time an older house has been updated this way, however, investigate further. At the very least, ask for copies of the permits and for the name and license number of the contractor who did the work. If the work is unpermitted or the contractor unlicensed, consider steering clear.
Shocking developmentsHome inspector Jim Gibbs checks out a lot of homes for real-estate investors in the Dallas-Ft. Worth area, and he's seen plenty of truly shocking remodels.
"The biggest problem I see is in the electrical," Gibbs said. The remodelers are "not doing anything near code."
Some of the most common problems:
Failing to update wiring when adding rooms or circuits
Making dangerous connections
Failing to add enough circuits to cope with today's households
It's not uncommon for kitchen remodelers to spend a fortune on, say, countertops and appliances while skimping on the electrical, Gibbs said. Instead of having five, six or more circuits to run all the microwaves and refrigerated wine cabinets, they have one or two.
You can see if there's a problem by simply turning on a bunch of appliances at once and see what blows. Or you can take a look at the electrical panel."If they've had a major remodel and you look at the circuit breaker panel and it doesn't look new," said Gibbs, whose Gibbs Residential Inspections is based in Plano, Texas, "you need to be suspicious."
Even a new box isn't a guarantee, however, since popping in a new panel is relatively cheap. You might also want to stick your head up into the attic to try to gauge the age of the wiring you see. If you have any doubts, you'll probably want a certified home inspector to give you a report.
Jarrett has seen do-it-yourself electrical jobs where the remodeler tapped into power directly from the street, running it into a garage or other room without benefit of fuses or circuits. Not only is such a stunt potentially lethal to the do-it-yourselfer, but the unregulated power could easily result in shocks or fire.
"It's a wonder they're walking around, that they haven't been electrocuted," Jarrett marvels.
The big cover-upMost states require sellers to disclose serious defects in their homes, but some still try to cover up serious water, fire or other damage with a coat of paint. Jarrett's become so accustomed to this particular dodge that he gets suspicious if he smells a fresh coat of paint in an area that's vulnerable to water problems, such as a basement. (You should also be wary if you find an area painted that normally isn't, such as an unfinished attic.)One way to spot fire or insect damage is by pushing on the wood to see if it's spongy, or scraping up some of the paint (in an inconspicuous place) to see what's underneath.
Water damage may take a little more detective work:
Can you see water marks or efflorescence on the foundation? Efflorescence is a white chalky substance left behind by water on the outside of the cement or brick.
Does the ground slope toward the house? That can cause water to pool near the foundation or under the house, leading to rot, mold and infestations.
Does it smell or feel damp under the house? Any moisture can be a problem. The wetter or more persistent, the worse the potential damage.
Is the roof in lousy shape? Curling, damaged or missing shingles or flashing are signs that the roof's leaking, even if the interior damage has been repaired.
Always call in a proWhat if your prospective home passes all these tests? You might be tempted to save money by forgoing a professional inspection, particularly in a white-hot market where other bidders are waiving this step.
Resist that impulse. There are still plenty of less obvious signs, visible only to professional eyes, that a home has trouble. Think of it as cheap insurance: A few hundred dollars spent now could save you a fortune later.



Top 10 mistakes of DIYers
From skimping on supplies to using the wrong paint, here are the top home-remodeling gaffes -- and how to avoid them.By Pat Curry, Bankrate.com
Have you overimproved your home?
On Bankrate.com: Older homes mean new challenges
On Bankrate.com: Remodeling investment properties

The standard rule with do-it-yourself projects is that the projects will take twice as much time and three times as much money as you thought they would -- or maybe it's three times as long and twice as much money.
Either way, the reason for that is the same. DIYers make mistakes. Lots of them. The good news is that you can learn a lot from mistakes. For example, whatever it was that my husband did to make all the outlets in the kitchen blow at the same time -- don't do that again. The bad news is that mistakes always wind up making your home-improvement project more expensive and more time-consuming than you want it to be.
With that as a given, Bankrate.com asked home-improvement experts for their lists of the top DIY goofs, with advice on how to avoid repeating the errors in the future.
The experts are:
Ed Del Grande, host of the DIY Network's "Warehouse Warriors" show, as well as other shows and building specials on the network. A master plumber, pipe fitter and fire-sprinkler fitter, Del Grande has more than 20 years of construction experience.
Lou Manfredini, the official Ace Hardware "Helpful Hardware Man." (You didn't think it was John Madden, did you?) The home-improvement expert for NBC's "Today" show, the Chicago-based contractor also answers questions from DIYers on the Ace Hardware Web site.
C.J. Iannuzzi, owner of 3SQFT, a design-build company in Miami Beach, Fla., and home-improvement contractor to the stars, including Madonna, Rosie O'Donnell, Gloria Estefan and Ricky Martin.
Barbara Kavovit, owner of Barbara K Enterprises. A New York City-based veteran of the construction industry, she now makes and markets DIY tools especially designed for women.
1. Not taking out the required permits. This is a big issue with both Del Grande and Manfredini. Considered a bother at best by many DIYers, permits actually serve a greater purpose than just raising money for the government. "People in permitting offices aren't evil," says Manfredini. "They're there to make sure the job is done right and you don't hurt yourself." Plus, for some jobs, such as putting in a wood stove, you need proof of the permit or your insurance carrier won't cover it. Not sure if your job requires a permit? Del Grande says that the rule of thumb is that you need one for anything larger than painting and wallpapering. It doesn't hurt to call the building department and ask.
2. Starting a job without the necessary tools and supplies. Nothing slows down a job more than not having all the materials you need. Manfredini says that the reason the pros can do what they do is that they buy quality tools. "There's always a bargain bin," he says. "It's not a wise investment. You lose time and money."
3. Inadequate preparation of the job site. If you do a small addition, suppliers will be delivering materials. You don't want them out of order or exposed to the weather while you are working, Del Grande says. Beware: They could be stolen if they're not properly stored. (If you have a septic tank, make sure you know where it is. If a supplier delivering materials in a heavy truck drives over it, you could be looking at a cracked tank. Yuck.)
4. Skimping on materials. Kavovit says she often sees DIYers use 1/4-inch drywall for building walls. You need to use at least 5/8-inch; 3/4-inch works well for a good sound barrier. The same rule applies to plywood for subfloors. Go with 3/4-inch. It creates a much stronger floor, especially if you're installing wood floors over them.
5. Using the wrong paint. One of the biggest DIY projects around, painting can make a place look great. Manfredini says flat paint should only be used for ceilings. Interior paints should have at least an eggshell or satin finish so you can scrub it. On outdoor decks, "sun and rain tear the heck out of the wood," he says. Clear sealers don't block the UV rays, and they peel. Use a linseed-oil-based stain; it drives the pigment into the wood and preserves it.
6. Improper preparation of walls for painting. A good, quality paint job is 90% preparation, Manfredini says. Clean the walls, sand them and patch any holes before you paint. Iannuzzi recommends a coat of primer or stain blocker if you're trying to cover over oil-based paint, stains or peeling paint, or if you're painting a lighter color over a darker color.
7. Unsafe job conditions. Nothing diminishes your return on investment like a trip to the emergency room. Wear safety goggles when using power tools or working with drywall or wood, wear hard hats when you're working under other people on scaffolding, and open some windows when you're painting or staining, or stripping old finishes off of floors or walls, Del Grande says. Iannuzzi cautions against wearing loose, hanging clothing, especially when using power tools. Wear gloves when carrying wood, metal and rock, or when hammering, and wear a nail or tool pouch to prevent damage to your floors and more important, the feet of people and pets.
8. Inaccuracy. Iannuzzi lives by the rule: Measure twice, cut once. It's so important for things like building walls, hanging drywall or cutting baseboards, counter tops or pipe. If you're going to err, err on the side of too long. You can always make something shorter; you can't make it longer. Spackle can cover up to a 1/8-inch seam, Iannuzzi says; if it's a 1/4 of an inch, the seam will pop the spackle and show.
9. Working beyond your limits. Everybody has them. Del Grande won't work on a roof; yours might be plumbing or electrical work. Don't stand on the top steps of ladders, and don't try to work beyond your reach. Ladder accidents send more than 164,000 people to the emergency room every year, according to the U.S. Consumer Product Safety Commission.
10. Failure to get a clue. You don't want to start to learn how to do a project on your own house. If you have a friend who is a contractor or an experienced DIYer, offer your assistance on one of his projects so you can learn. No one will turn away free labor. If you need to remove a supporting wall, have an engineer look at it to see what kind of beam you need to replace it. "If you have a saw in your hand and have a question about what you're doing," Del Grande says, "stop. Follow that little voice in your head."

Complete Home Rehab In 10 Days

by: Dan Auito

This report is about taking a house and restoring it to an aesthetically pleasing dwelling that has reclaimed it’s functional utility. In effect, it is the anti-aging medication for bricks and mortar.
This report assumes that you have already or will soon acquire the proper house. The one that is in essence, ripe for rehab. Be selective and sure of the house’s potential to allow for a profit after all the hard work is done. I will help you find your house or houses.
In the proverbial nutshell, it helps if you choose a house from the start that has a sound plumbing, heating and electrical system.

Plumbing
Heating
Electrical

These are things that are expensive to correct in relation to the value they return to you upon resale. Most often, people cannot see the inner workings of these systems and they take them for granted.
Very few buyers are going to give you an extra $15,000-$20,000 in your asking price because you have replaced things that they can’t see and already take for granted as just a basic component that is buried in the structure. Also, they assume these components to be warranted against defects by you.
After all, it is mandatory in most, if not all states that you fill out a disclosure form that tells the buyer of every defect that exists or ever has to your knowledge. So inspect the systems of your investment alternatives carefully, as they can be expensive to repair and replace, with minimum dollar return value being realized at the sale.
Along these same lines, you should also pay close attention to the following cash vacuums:
Roof
Foundation
Structural Integrity
Here are a few ways to quickly gage a home from its appearance:
Stand across the street from it. Now look at the bones of the structure. Does it look like a sway-backed horse, with the roof sagging in the middle? Does it have flat areas in its design that don’t allow water to be drained away quickly?
Water, dampness and rot are the equivalent of cancer to the human body when it concerns a structure. Shingles can be replaced. That won’t necessarily stop me from buying. Usually I will use that old roof as a bargaining chip in negotiating the seller down to a lower price. However, if I crawl into the attic and see that the plywood has become rotted and truss members are also affected, it’s time to move on to my next potential deal. Life is too short and I will never rehab it in 10 days if I have to rip the roof off and rebuild it too.
Some other conditions, such as sagging eves, wavy roof surface, rotten fascia and trim pieces, and insect infestations can be deal killers too, if severe.
Solution: Get into the structural members with a long, sharp, sturdy, standard flat-tip screwdriver and attempt to penetrate structural components that are made of wood. You won’t hurt anything if there are no underlying deficiencies. However, if someone has freshly painted over or patched it, that screwdriver is one heck of a lie detector! Use it.
Now, I’m not saying people would do that. It may just be the termites have eaten everything but the exterior coating of the wood to conceal their activity whatever the case probe.
There are also tile roofs, metal roofs, cedar shake roofs, hot-rolled roofing, tar and gravel roofs and always a few new high-tech roof coatings. I feel my main concern is whether the decking or the roof support structure has been undermined by water, insects, rodents, poor materials, poor design or craftsmanship, a lack of fasteners, strapping, etc.
Shingles and coatings can be replaced. Just know what is underneath. That’s my criteria. Negotiate lower for needed replacement of roof coverings if you can. I dwell on roofs because it protects everything else!
Next on the list of deal killers is the foundation. The same thing applies to the foundation. I will start by standing back from it and looking at it from a distance. Does this place look like the Leaning Tower of Pisa? Or are the seams coming apart? Do the windows and doors look square? Are porches, stairs and additions on firm ground as well?
Block homes can tell you very quickly if they are stressed out just by the appearance of the mortar joints. Those giant unsettling cracks can and do tell a story. This does happen and mortar cracks maybe 10-years old. You need to investigate further.
Once again, water is a sign of trouble with foundations because it leads to erosion, rot, mold and mildew. It washes out foundation materials and slabs will crack. It rots sill plates and your walls are no longer firmly attached to a base.
If you have a crawl space, it’s time to get your coveralls on and get in there. Now, let’s use our heads here and I mean this! Before you enter a dark, supposedly uninhabited, infrequently entered, dark and restrictive to movement area, assess the situation. Ask someone who has knowledge of the dwelling if there has been any animal activity that they know of. You may also encounter bees, wasps, ants, spiders, snakes, slugs, mosquitoes, rats, mice and a host of other inhabitants. Beware an
d
be prepared. It’s truly another world in some cases.
If you don’t want to do it, hire a professional and I do mean a pro, not some Joe who says he is one. For goodness sake, use a licensed professional home inspector to protect yourself in all areas if you’re just not sure!
OK, you’re a trooper and you’re going in. Good for you, Rambo! You’ll make it in this business because it takes faith, guts and determination. By getting into this type of situation, you’ll learn a lot more about every part of the homes you inspect.
You should have a strong flashlight, your trusty screwdriver, maybe some insect repellent and a safety observer standing at the access entry to give you piece of mind. Now you can go to the perimeter walls and inspect where the walls meet the foundation. Look for rot, misalignment, cracks, separations, water damage or any other condition that doesn’t appear normal.
While you’re down there, look at the other foundational supports, you will see pier blocks and posts, other concrete support pillars and walls, beams, joists and cross bracing, and the underside of sub-flooring. Check this stuff’s condition. Does it look original? Is it structurally sound? Or are there some discrepancies that need further investigation? Take a good look and smell!
Don’t leave yet. You also will want to look at all that plumbing and electrical that is there as well. Scan the perimeter. Do you see any sunlight coming in from where it shouldn’t be? That might be a hole that needs repair. This is common sense land, not computer a chip lab. You can inspect for general condition. Simply follow everything to its logical end, looking mainly at the condition of the different components.
OK, you’ve made mental and physical notes. Now dust yourself off and go inside the house if everything has checked out so far.
So the roof and foundation have passed your keen eye. Let’s look at the rest of the house with respect to its structural integrity. More than half of your structural integrity check at this point is already complete as the roof and foundation are two of the most important components and those have been done. Now you are left with the interior spaces of the structure.
Here’s what I do once inside. I stand at the front door with a checklist in hand (www.inspectamerica.com) and I begin to scan the walls, ceiling and floors. I’m looking for water stains on all three surfaces, as well as patches that were used to repair or conceal damage. I go through every room and look for signs of damage or concealment.
Any flat floor is a good candidate for my scientific marble test. I’ll drop my marble; if it rolls to a corner, that floor ain’t level, Buckwheat. That’s a simple test but I do want to know that the under-layer or sub-flooring is sound and firmly attached to all those joists, and beams and trimmers and blah, blah, blah.
Soft spongy floors are of concern, creaky floors are annoying and rotten floors are another story. So once again, I’m looking at the structural support of the floors. I don’t care that the cheap, yellowed vinyl is coming up at the seams. I don’t care that the carpet is matted down or thread bare, and I don’t mind if the finish is worn off of hardwood floors or tiles are loose.
Floor coverings fall under the label of cosmetics. That’s such a pretty word and that’s what you want to concentrate on: cosmetics...more on that in a moment.
So the floors pass my test for sub-flooring and structural integrity is great. Now I can check that the walls are square because they are attached to that floor, and then I can check that the doors all operate properly and are square too.
How much more can there be than that, Dan? Well, let me tell you a few things that can bite you here. Let’s say the structure overall is good. By that, I mean you have a solid roof, a solid foundation and sturdy floors and walls.
What is behind those walls? The things that bite you aren’t usually seen until you get bit. One particular painful bite is finding out your wiring is not grounded or that the circuits are not properly protected. You’re looking for three-pronged outlets and modern plastic-encased wiring made of copper, not aluminum. You want circuit breakers, not fuses. What you really need here is a licensed electrician to do this more in-depth and professionally licensed review of the system.
I have seen more than one Joe Homeowner rehab go up in flames because of a lack of respect for electricity. Licensed electricians bring you up to code and protect your investment. Find a good one and make it a point to shower him or her with praise, attention and money well spent.
They will give you free estimates, so use them as a preliminary inspector with you. If you decide to buy it, use them to do the work that needs to be done.
Plumbers are a breed apart. You would think they use gold for soldering your pipes with the prices they charge. My grandfather was a plumber and I was on the truck with him at nine years old. A plumber may or may not give you a free estimate. With a little digging, it can be done. Just give them the work if indeed you do buy the house.
With plumbers, the only time you’re going to need one is if you are doing major system work or the once every ten year hot water heater job. Also the occasional clogged main sewer line to the street.
In today’s P.V.C. plastic plumbing kits world, you can hire just about any good all-around handyman to get the job done. If you have to tear through a wall to get at plumbing, building code inspector-man will say, “Get a licensed plumber.”
Heating and cooling: the air conditioning system, if the house you’re inspecting doesn’t have adequate heating and cooling, that can become expensive. Let’s say you have a flat roof home in a hot climate with window unit air-conditioners, and you intend on bringing this house up to what a modern day home dweller expects.
You may have a problem. Where would you put new ductwork if you don’t have attic space to house and route central heat and air? Once again, call in a pro if you need some advice. They do give free estimates!
Here’s a point for you to follow up on: the plumbing, heating and air-conditioning guys all drive service trucks. Be on the lookout for those trucks if they are your neighbors; go say “Hello” and introduce yourself.
Regardless, I have always done this and what I am saying is this: these guys most always work on the side and that means half price. You may have to pull a permit as a homeowner but the savings is substantial. Develop a network of these blue-collar geniuses. They are the guys who will transform your investment fast!
So now you have a solid house. By that I mean, plumbing, electrical, heating and air-conditioning, roof, foundation and overall good structural integrity.
So what’s left to do? Call in your army of carpenter ants, from painters to carpenters and flooring installers, yard maintenance and tree trimmers, and handymen of all sorts.
This is the whirlwind tour. Let the demolition guy in first. Order a dumpster for the next ten days. Order demolition man to throw out everything including the kitchen sink. What I am out to do at this point is to clear the decks.
A blank canvass is created for the painters to perform the transformation. They come in at this point and patch and paint. Let them blast the place with their airless paint-spraying arsenal inside and out. Give them 3 days and you have just added a huge improvement to your investment. This is the biggest dollar-for-dollar return you can make.
One cautionary note here: Make absolutely sure that quality paint is used. When it comes to painting, it’s the labor that kills you, not the material. I insist on Sherwin Williams Super Paint. It is a miracle formula that I am convinced could cover up bullet holes without any patching compound and it lasts forever. It’s worth every penny; insist on it!
So my idea of finding the ideal fixer upper is to find those where the structure and systems are fine but it still needs demolition man and the paint brigade. Everything up to this point has been inspection and appraisal of the situation. Once I’m satisfied that it is a cosmetic rehab and not the expensive money pit, I send in my cosmetologists.
I wouldn’t call these guys that to their face but these are normally men adding residential make-up to the bricks and mortar. Once the painters leave, the flooring guys are right behind them, laying tile and carpet. These guys are out in 2-3 days and my cabinet and handyman plumber are attacking.
Light fixtures, vanities, toilets, sinks, doors, switch plates and outlet covers…wham, ten days are up and this house is either held out for rent, lease-optioned or sold for a whole heck of a lot more than the ten grand I put into it, if that much.
You must be somewhat of an appraiser and deal finder. It takes time to recruit your cosmetologists, but you will run across them in your travels. Friends and family usually can provide you with some serious leads. Start networking and talking to tradesmen. Get their numbers and schedule them to descend upon your ugly duckling at certain times and watch the transformation begin.
It took me years to learn these tricks. I did it all myself for years and it always took three months when I did it myself. The sad part is that I thought I was saving money that way.
Can you see how much I actually lost? Here is a quick example. I bought a house for $55,000. Its deficiencies were purely cosmetic. I used other people to do all the work and I pitched in to keep them organized. Ten days later, it was done. I spent a total of $5,000 on materials and labor and it appraised at $90,000 in 10 days!
That’s $30,000 in 10 days, not 3 months. Now marketing time would take 45 days but I know how to do that too, and I will also show you how you can do it too.
There is no doubt about it. This can be done and you can do it. In all honesty, it may take you 30 days to achieve a completed house. That’s may be 3 times what it took me but I am experienced.
Here’s a pretty neat way I figured out how to find good cosmetologists (tradesmen). If I know relatively no one in the area, I will ask a local appraiser to suggest who he would use if he were me.
This is an intelligent way to ask that question. I ask it in this form: “If you were me, who would you use?” Now that triggers a self-preservation mechanism in their brain and they give me excellent people, who are very good at what they do! Try it; it works.
I went to appraisal school and learned a lot. Believe me, appraisers are underrated and treated poorly. They truly are experts at discerning quality and value. They know whom does quality work. Make friends with a competent appraiser and the lenders that accept their appraisals. Hint: You’ll get very fair evaluations and their lender approves them.
Marketing, hunting, finding and capturing the “ripe for rehab houses” is another book entirely. However, don’t lose faith because I have written that book for you as well. Here is an excerpt from my other book. It is called Magic Bullets In Real Estate.
There are 4 phases, or lifecycles, to real estate and here is how it often goes.
Phase 1 You will see new construction, bright shiny homes popping up, landscaping contests, baby strollers and tricycles in the neighborhood. This is probably going on in the suburbs of the city, as new growth tends to radiate out at a pace of one mile per year from growing and prosperous cities.
Phase 2 The same neighborhood now 10-15 years later has aged a bit and now you see basketball hoops and 2-wheel bikes, as the kids are older and want more mobility.
Phase 3 The kids are grown and gone with families of their own and now the parents are riding their own 3-wheel bicycles, trikes to the hip grannies. Here in Phase 3, you’re looking at 25-35 year old homes, where some people are passing away. Others are just hanging in and some are moving in with the kids or going to an A.L.F. (Assisted Living Facility). No doubt, you have outdated homes, deferred maintenance and some repairs to be made. Here is the beauty of this whole thing. These are my cosmetology candidates. Here’s why! The formally elder owners lived there and they needed everything to work. They didn’t update it. They just fixed things that needed repair in order to maintain a level of comfort. They had pest control and the Sears man come annually and piddled around. So things were kind of looked after in that manner. Buy here!
Phase 4 Revitalization – That’s what happens as a result of you buying your ripe- for-rehab fixer-upper in Phase 3 neighborhoods. Odds are, you will rent it out, lease-option it or sell it to a young family when it does sell, and guess what? Yep, out come the tricycles and baby strollers and it starts all over again.
Tricycles
Bicycles
3-wheel bikes (buy here!)
Revitalization
Determine what cycle different neighborhoods are in! Follow cycle #3.
Isn’t that a beautiful story; isn’t that the truth? Think about your own parents and your own childhood. Now I also want you to think about that brand new young family that is counting on you to treat them fairly and give them a trouble-free home when they buy or rent from you.
The harder and smarter you work, the better quality and value you can provide to others. Don’t rip them off. Don’t take advantage, don’t scrimp and for Pete’s sake, do your best to do your level best. You need education and help from others to achieve these heights of excellence. Visit us starting July 2004 at www.magicbullets.com

About The Author
Dan Auito is a dual-licensed real estate agent and appraisal assistant. Dan is a 20-year veteran of the United States Coast Guard. He has acquired over 1.3 million in real estate assets in 14 years while also founding a non-profit drug prevention corporation, a real estate consulting group and is the author of “Magic Bullets in Real Estate.” This 300-page power-packed book (due out in early July 2004) comes with a website that further supports its readers. Dan lives with his wife Kimberly and their two children, Brandon and Briana, on the emerald isle of Kodiak Island, Alaska. Dan may be reached at magicbullets@alaska.com or by visiting http://www.magicbullets.com/. Call 1 907 481-6300 or write 1619 Three Sisters Way Kodiak AK 99615