Wanna Become a Successful Rehabber? Follow This Recipe (Part 2) From Paul Angelino, The Fix & Flip BOSS … In my last post, I detailed steps 1 through 3 for the rehab recipe for victory. If you didn’t get an opportunity to notice that post or you have to have a refresher, take a look now. I know you hungry rehabbers are searching for your second installment – so here goes! Okay, so seeing that the framing is 99% complete, your town will in all likelihood call for a building inspection. After the go-ahead from the inspector, your framing contractor is going to be wanting to get paid – so here’s an ENORMOUS TIP (are you ready?): Do NOT pay your framing guy 100% of what you still owe him. Why? Your plumber and HVAC contractors will undoubtedly add large main drainpipes, and large gnarly metal air supply and return ducts in their rough-ins. Those rough materials will need to go behind the walls, (unless you’re trying to get that New York “industrial-loft look,” that went out of fashion in 1985) and those items must be framed in. So, your framing crew has to return for your final framing work. Which my friend is why you don’t ever pay them off 100% of what you owe them following your framing inspection! Yeah…you can thank me now, but I’m just gettin’ started here! Following the finalization on the framing, and before you actually pay the framing contractor – you’ll desire a site meeting with your drywall contractor. “Why Paul?” Well, I’m glad you asked…. Just like each properly laid brick creates a solid foundation, properly framed walls allow for a simple, fast, and clean drywall install. And who better to check out the workmanship of your framing crew than your drywall contractor who’s produced a living nailing drywall to framing studs? Can you understand how these people will help keep one another honest, thereby helping you save a great deal of time and cash? In addition to signing off on your framing, your drywall contractor should take advantage of this meeting to draw up a comprehensive list of materials that he’ll really need to get the job done. Step 4: Mechanical Rough-Ins I mentioned the plumber and HVAC contractors above. The 3rd portion of any residential mechanical system is the electrical. During stage 4, these people do their thing. The HVAC installation is easily the most intrusive, so you’ll need to schedule that first. He’ll install all of your ductwork and maybe even the furnace. The plumber will install all the water-supply lines for your kitchen and baths, in addition to vent pipes and drains. Just prior to being done, call your electrician to have him engaged. The electrical rough-in includes wiring all of the switches, lights, outlets, smoke detectors, and various other circuits in the electrical panel. The electrical rough-in might also incorporate a new breaker panel (if necessary) along with main electrical lines on the outside of of your house. As with all your contractors, your mechanical sub-contractors should be insured and licensed – plus they should come with several pristine references. These people can kill a rehab, so make sure you hire only reputable firms. Upon completion of the work they do, each will plan a rough-in inspection. When they’re each green-lighted by way of the inspectors, each is going to be wanting to get paid. Be sure you don’t pay each sub over 1/2 – 2/3’s of your contracted price. You need to be sure you keep enough money to ensure that they’ll be highly motivated to come back to complete the mechanical trim work. Step 5: Insulation & Windows It does not matter where you reside in America, you’ll need insulation. And because of our government, building codes are changing rapidly to put down the law for precisely how much insulation you’ll need – so make sure you look at your local building code. As rehabbers, we earn a living finding smaller, leaner, hungrier contractors. I break this rule only if trying to find insulation contractors. I use a company called DeVere Insulation. It will cost less for labor and materials than I’m able to even purchase the materials for cost. Upon completing insulation, in most all cases, you’ll need another inspection. That’s right – another day awaiting the inspector to arrive and wave his magic hand to state, “You’re nothing but good here.” If your own job requires new windows, now is going to be the time in the rehab process for the window install. This assumes needless to say that you’ve already measured and pre-ordered your windows (that ought to have taken place in the demo stage or right after framing. Rehab Tip: With each inspection, you’ll get yourself a sticker. If all goes well, the sticker should be green and signed, initialed or stamped by the inspector. If you fail, the inspector will usually post a red sticker, or he will write FAIL on the green sticker. These stickers should be posted in conspicuous places on the job site. In most municipalities, you’ll get a sticker for the HVAC and plumbing, a sticker for the electric, and a sticker for the building. We post our stickers on the electrical panel. See if you can guess what comes after insulation… Next time I’ll answer that question for you – and I’ll cover the next few steps! Until then…I welcome your comments and questions.