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Like lead based paint, many older homes have asbestos.  Asbestos was used as an insulator and mostly found wrapped around duct-work, plumbing lines and other pipes, floor tile, attics, roofing, etc.  If exposed and inhaled over a long period of time, it can severely damage human lungs. Asbestos can also cause other problems such as warts, plaques, and asbestosis.  Although it has been banned in many other countries, the Unites States still allows its use in new construction.

Removal 

Asbestos should be handled and removed by professionals.  It can be encapsulated so that the tiny fibers will not escape into the air.  It should not be vacuumed as the fibers are too small for the vacuum.   The EPA website is a good resource on what to do when you think you have exposed this material.  There you can find a local asbestos mitigation service.

Real estate tax sales are another avenue to acquire investment property.  They can require some research and comfort with having your hard earned dollars unavailable to you for a period of up to two years in some cases.  The good news is that the rules usually require the original owner to pay the lien holder interest if they are able to redeem the property.  In some areas the interest can be up to 24%!!  That’s what I call a great savings account.  In fact many investors use them for just that. 

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The best way to save a few bucks on your house flips is to do some of the work yourself.  Of course most of us are not qualified which is why we pay people in the first place.  One area that does not require special skills is demolition.  You might think to yourself “This is a no brainer”, but be careful.   There can be a few hidden problems with demolition.  Besides the obvious back breaking work of slinging a sledge hammer and rolling out the trash to the dumpster, there are also potential hazards.

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Did you know your utility company gives discounts and rebates for your flip?  Depending on your project and whether or not you are holding or flipping, this can mean considerable savings for you or your tenant.  The discounts are normally available when you buy energy saving appliances, install additional insulation, replace old air conditioners, space heaters, install double pane windows, and many others upgrades. 

The return comes in the form of cash vs. a loan, and can cover anywhere from 50 to even 100 percent of the cost of the qualifying upgrade.  You will need to check with your local utility company to find out more information.  In some cases you need to apply before the work is performed.  The utility company may want to inspect the work before final approval. 

I’ve waited as long as possible and the Hopkins Biotech area project is back in rehab mode.  The HVAC work has begun and should be ready for rough in soon.  I still have not received anything from the city.  As far as I’m concerned there is no reason to assume I ever will.   I realized a long time ago that I cannot trust anything that I am told or even given in writing from the development corporation that is responsible for the area project. 

I feel a lot better moving forward again anyway.   Each day that my property sits, I loose money and it’s sat for most of the last 10 months.  I can no longer afford to keep paying out and not getting anything back so I am forced to move forward.  If they decide that they are going to acquire it, they should pay fair market value based on the renovations and COMPS for rehabbed properties in the area.  I am prepared to fight tooth and nail for anything less.

I will be showing fewer pictures but I promise to show some shots after major phases of the project are completed.  I should be starting the Old East Baltimore Project soon.  Once that happens, I plan to focus my blog on that project from start to finish.      

Kitchen cabinets come in various shapes, sizes, colors and most importantly for this post…prices.  Too many choices are not always good when it comes to making a final decision.  House flipping on a small budget allows you to narrow down the choices quite a bit.  I prefer solid wood cabinets in my house flips and luckily there are many choices.  Hard woods such as oak, maple, cherry and ash tend to be a little more popular and therefore a little more expensive.  Also the availability of hard wood continues to decline which also adds to the price. 

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Making sure that your contractor cleans up behind himself may seem trivial but is more important than you might think.   Some homeowners associations and local building codes require cleanup according to strict rules.  You can and will be fined for leaving debris and trash on the exterior and even interior for a prolonged period of time. 

Cleanup Clause  

Make sure that you always have a clause in your contracts that requires the contractor to clean the premises each day.  Be specific as to how clean you want the property to be after the work is complete.   I like for my contracts to read something like the following: “Premises should be cleaned each day and in a broom swept condition upon completion of work prior to final payment”.  Depending upon the contractor I also include a line that states that all remaining building supplies, remnants from demolition, tools, and anything associated with the job should be removed.

I’ve decided to write a series of posts about house flipping on a small budget.  The purpose of this series is to discuss the use of materials that are lower in cost but without sacrificing aesthetics.  I typically use high end materials i.e. granite countertops, hard wood floors, all wood cabinets, ceramic tile, Kohler faucets and fixtures, etc.  Occasionally there are times when the budget is a bit tighter or the location allows for a little less flamboyance.  One material that has come a long way over the years is linoleum.

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Some big mistakes that new flippers make come at the very end.  Specifically items like appliances, flooring, trim, cabinetry, tile, countertops, and paint are all huge factors in how quickly your flip will sell.  All of these factors must play well in your final product.  When it comes to painting it’s usually best to go neutral and choose no more than two colors.  However there is more to painting than meets the eye…  House flippers must also pick the best finish. 

Flat Paint

Flat paint gives off a dull (flat) finish.  Although this may sound unappealing, it’s actually the best choice for the majority of the house.  Flat paint does a better job at hiding imperfections, especially on new drywall.  It’s frequently used for all interior walls and also on the exterior of the house.  Two exceptions may be the bathrooms and kitchen areas, where more dirt tends to collect.   Historically flat finishes are difficult to clean, however there are newer washable flats that tout easy to clean surfaces with minimal cleansers required.

Glossy Paint

Glossy paint comes in several varieties such as satin, semi-gloss, high-gloss etc.  These paint finishes have bright, shiny surfaces.  They also are easier to clean which is why they are commonly used in kitchens and bathrooms.  The problem with them is that they do not hide the imperfections as well as flat paint.  Glossy paints are also used on trim work such as moldings, door jams, window trim, etc. 

The main priority for every house flipper is to sell.  The best choice for paint may be to use a washable flat paint everywhere except on your trim work.  This way you can hide imperfections but still give the new homeowner a washable surface.  Another thing to keep in mind is that the new owner will want to paint and decorate their new house themselves.  Keeping things neutral will allow potential buyers to use their own imagination while evaluating your product. 

Getting good water pressure in your flip or rental is essential to happy home ownership.  I for one cannot stand it when I get in the shower only to get that soft sprinkle of water that takes ten minutes to get the soap out of my hair.  This typically occurs in older homes and in the inner city where the pipes are older and the water lines require upgrading.

 One way to begin diagnosing the problem is to use a water pressure gauge.  You can use these to check the water pressure outside of the home.  If the pressure falls between .40 to .70 it usually indicates normal water pressure coming to the house.  If it’s less, you may want to call your water company to see about increasing it.  If your pressure is within this range then the problem could be the flow inside the house itself. 

If you are flipping an older house then you probably have old corroded pipes which will restrict the flow of water to the fixtures.  Many of these older homes have galvanized pipes as well.  Have a plumber run a new copper main cold water line from outside the house where the pressure is normal.  In some cases you will need to call the water company to have this done.  You can also run a new line directly to the shower/tub that you are installing.  The plumber can also run a hot water line directly from the hot water heater.   Another cheaper option may be to use a shower head that actually boosts water pressure with volume controls.