Are you about to take on your first major renovation project on a rental property? It's thrilling to take on a new project, but it may be difficult to figure out the finances, find inspiration, narrow the scope, find the right team, and evaluate cost breakdowns for a fix-and-flip or rental property renovation.
However, a schedule for the renovations has not been planned. Many first-time property buyers fail to account for this factor, which can result in costly delays and overruns.
Once a project begins, it is usual to discover that the estimates were inaccurate, despite your best efforts. Many things might go wrong on a building project, leading to surprises you hadn't planned for.
In this article, you'll learn valuable information that will help you schedule your fix-and-flip job so that you're ready for any challenges that may arise. Prepare yourself with some coffee and note-taking.
Things that affect how long the repair will take
If you have enough money and time, you can finish your renovations on schedule. House flipping projects that require extensive work, such as new wiring or plumbing, should take between two and six months to complete. The time required for a refurbishment is also affected by other factors, such as:
Space
How big is the space that's getting updated? Even if it's simply the kitchen and bathrooms that need updating, the amount of time it takes depends heavily on how big those rooms are. When working on a larger area, more resources, time, and labor are needed to complete the project.
Disruption
It might be difficult to live through a home renovation project. Maintaining a normal schedule is challenging when the mess, noise, and dust are always there. Because of having to work around your home, the renovation process could take longer.
While repairs are being made, it might be best to relocate if possible. As a result, the construction team will have more room to work in and be able to move more quickly throughout the house.
But if you have a lender, you should talk to them first before making any decisions about staying or leaving. You can't reside in the house you're fixing up to flip before, during, or after the project, according to Kiavi and other such lenders.
Before beginning any renovations, you should find out if there are any rules or regulations that must be followed. If you put in the time and effort to properly plan, your fix and flip project will go off without a hitch.
Planning
It's tempting to go headfirst into a restoration project and try to knock out every task in one fell swoop. However, it is often best to take things slowly and methodically in order to achieve the best results.
Separate the work into manageable chunks. This will aid in the early detection of any problems. This way, they can't grow into more serious issues. Taking the project one step at a time like this also prevents you from being overwhelmed.
To get started, think about what supplies and equipment you'll need for each phase of the remodel. Time spent on planning, building, cleaning up, and testing will be easier to predict.
Don't guess how long a stage should take without first looking into how long it took on other projects like yours. Make good use of this data as a reference.
It's crucial to thoroughly plan out each step of the renovation process. The time required for the completion of the project will be established. Make sure you take your time with this.
Doing it yourself VS Hiring a Contractor
Choosing whether or not to renovate your home can be challenging. What's better: doing it yourself (DIY) or getting a professional in? DIY home improvement projects have the potential to be exciting. However, the time investment and risks must be carefully considered.
A large-scale renovation job could end up taking longer than expected, so keep that in mind. Even if you have done similar work before, there is always the chance that something goes wrong during the procedure.
Investing in a reliable team of contractors is a smart move. They will be able to guarantee the quality and timeliness of the work. The added benefit of knowing that trained professionals are in charge of the project might be invaluable.
It's up to you to figure out which path forward makes the most sense. Just make sure you give due consideration to all of your options.
Material Availability
The availability of materials is a major issue that might affect the duration of a renovation project. It's important to make sure you have access to all of the supplies you'll need before you get started on your restoration. Availability is a crucial consideration. If they aren't, you'll need a strategy to get them in time to finish the job on schedule.
Finding the materials you need is as simple as doing some online research for deals and then going to a local hardware or remodeling store. You can save both time and money by doing this beforehand preparation.
Before beginning each new section of the renovation, plan ahead and collect all the necessary supplies. Keep in mind that you may have trouble locating some components. If you prepare ahead, you can avoid frustrating setbacks caused by things like unexpectedly low supplies.
Cost
When planning a remodeling, one of the most important considerations should be the budget. Whether you're just remodeling the bathroom or giving the whole house a facelift, the costs may mount up quickly.
Having a solid plan for how the project will be funded is a prerequisite to getting started. You can keep things moving along and maximize your profits by doing this. Materials, labor, permits, and any other unanticipated expenditures must all be factored into the final estimate.
Hard money loans and private money loans can help you out if you're strapped for cash. You can cut down on necessary time with these alternatives.
Financing
Timing is crucial in the real estate industry. The longer it takes to finish a fix and flip project, the more money investors will lose.
House flippers need quick access to funding. It might help you better estimate how long your projects will take. This may prove crucial to the outcome.
- Hard Money Loans: A hard money loan is a common way to get money quickly. Private money lenders are the usual source for this form of loan, which is collateralized by the property being flipped.
It may take weeks to get approval for a loan at a traditional bank. The approval and funding processes for hard money loans, on the other hand, take only a few days. If you're in a hurry to close on a house or start renovations, this can work to your advantage. - Fix and Flip Loans: A fix and flip loan is another way to get fast money. Investors in real estate can benefit most from this lending program. The plan is to buy a house, fix it up, and sell it for a profit.
Short-term hard money loans are one form of "fix and flip" financing. The valuation of the property after the improvements have been made is used to determine the loan amount. They're easy to get and will give you the money you need to start working on your renovations right now. - Bridge Loans: Bridge loans are common in the real estate flipping industry and are typically provided by private or hard money lenders. Bridge loans, on the other hand, are meant to cover the time between a property acquisition and a sale.
You can get a bridging loan to help you buy a property quickly, even if it needs extensive work done to it. Fixing up the house is a prerequisite to listing it for sale.
Timelines of Common Rehab Tasks
Here are some suggested timelines for various projects, taking into account the aforementioned considerations.
Kitchen and Bathroom
The kitchen and the bathroom are two of the primary rooms to focus on when doing a fix and flip. These features can have a dramatic effect on the property's value and ultimately determine whether or not it sells.
Renovations to the kitchen and bathroom require careful preparation. Time constraints should also be taken into account.
The scope and nature of the work will determine how long it takes to renovate a kitchen or bathroom. How long it takes to renovate depends on these factors. A shorter period of time may be required, for instance, if only cosmetic changes, such as paint and cabinet hardware, are to be made. Larger-scale remodels that involves installing new cabinetry, worktops, and appliances will take more time.
Working with a dependable contractor is a must when planning a kitchen or bathroom remodel. The contractor is responsible for providing a realistic schedule for project completion. You'll be able to prevent costly or time-consuming surprises by planning ahead in this way.
The average time for a kitchen remodel is between four and ten weeks. The average time for a bathroom remodel is between six and eight weeks. Keep in mind, however, that the circumstances of each project can cause these estimates to shift.
Basement and Attic
Basements and attics provide unique challenges during the renovation of a property intended for resale. If done right, renovations to either room can significantly increase the value of a home. However, they may also provide special difficulties that delay the progress of the project.
Depending on the scope of the work, basement finishing can take anywhere from three to ten weeks. If just minor changes need to be made to make a basement habitable, the process could take less time. The length of a remodeling project can be increased by the necessity of extensive electrical upgrades.
The inaccessibility of attics makes renovation even more of a chore. It can be very difficult to have running water and power up in the attic. This is especially true if these services weren't included in the original building plans.
All of these things can make the renovation take longer and cost more than expected. Attic renovations can take a long time, sometimes months, depending on how extensive they are.
To guarantee the success of a basement or attic remodel, real estate investors should use seasoned professionals. Expert contractors who are accustomed to working in these environments are mandatory.
Roofing and Siding
Roofing and siding renovations for a fix and flip house can be labor intensive. However, this can have a major impact on the value and aesthetic appeal of a house. Renovations of this magnitude require considerable preparation. Consider the full scope of the project and make a time estimate.
Roof repairs for leaks or aesthetic upgrades are typically straightforward and can be completed in as little as a week or two. However, this could be a longer and more expensive process if the roof has decay and needs extensive repairs.
You should think about hiring a professional roofer. They are in a position to accurately analyze the damage and estimate a reasonable completion date.
Depending on the extent of the damage, siding repairs can take a long time. The extent of the damage and the scale of the undertaking are two factors to consider. Depending on the severity of the damage, repairs could take anywhere from a few days to several weeks.
Siding replacement could take longer than expected if extensive damage is present. Investors would be wise to hire siding contractors who can advise them on the best options for their home's exterior.
If you want your roofing or siding remodeling to go smoothly, you need think about how the weather can affect your timeframe. If the remodeling is taking place, for instance, during the wetter months, that could extend the total time it takes to finish the job.
How can you shorten the length of the renovation?
To meet deadlines and stay within budget, property renovations necessitate meticulous preparation and execution. As a fix-and-flip investor, you want to minimize the time spent on repairs and maximize your profit. To that end, consider the following advice:
Research
Doing your homework is a crucial part of shortening the renovation process. You should learn as much as you can about the area you plan to improve before you start working on it.
This will allow you to set a ballpark figure for the project's cost and a general timeline for when you may expect to finish it. During the investigation phase, websites like CostHelper.com, DIY or Not?, and the Remodeling Calculator might prove useful.
Planning
After you have a firm grasp of the scope of your investigation, you can begin crafting a strategy. A home remodeling planner or general contractor can help you map out a plan for your project. Create your own DIY guide by keeping a thorough spreadsheet or paper with each step for each room in the house. This can help you keep track of your renovation details and prevent you from forgetting anything along the way.
Preconstruction
Getting the necessary permissions and construction supplies before assembling your crew is essential. This may be done by first reviewing the local and state renovation codes. Make sure you have all the proper papers before beginning any renovation work, as doing so without permission might cause considerable delays.
Construction
The length of time it takes to complete a home renovation depends greatly on how long the construction phase lasts. Stay on track by sticking to your plans while being adaptable enough to make adjustments as necessary. Maintaining a timetable like this will help you finish your renovation job on time and under budget.
Conclusion
By adhering to these guidelines, you can expedite the refurbishment of your fix and flip project and increase your profits. It's important to do your homework, make a strategy, get the appropriate permits, and stay organized before, during, and after construction. If you have the correct strategy and mindset, you can finish your renovation project and meet your financial objectives.
Looking for financing on your next Fix and Flip project? Let us help! Reach out today for a quote on your next project.
