When considering that perfect piece of property to invest in, it’s critically important to keep rehab costs low to maximize your profit. Even with the great hard money rehab loans we offer, we would still rather see you minimize your risk by knowing what to include is the cost of a rehab. Here are a few things to think about when it comes to one of the most expensive parts of a rehab, the roof.
The material used for the roof can have a direct effect on the cost of repairs and replacement.
Take for example an asphalt roof. Such roof is the most typical residential roofing in the United States, vs. a Clay roof, which is also very popular, especially in desert states. The cost of replacing or repairing an asphalt roof is much cheaper than that of a clay roof. A clay roof is heavier and needs specific structural support before it can be installed. These are added expenses that can subtract from the profit margin.
Keep in mind that in order to be functional, a roof has to prevent water from leaking through the ceiling. It also has to prevent water from cascading down the exterior walls and causing water damage to those walls. A roof must also add to the beauty of the property. If a roof appears less than functional, then it may hurt your asking price. Also, make sure you factor in gutters and flashing when it comes to the roof portion of the rehab. These costs are good to know when you are estimating hard money rehab loans for financing your investment.
Mother Nature can be a huge factor when it comes to the wear and tear of a roof.
Wood roofs, for example, have been known to rot where puddles collect and attract termites and other insects. Look for signs of this when examining the property. Wooden roofs with southern exposure are prone to warping due to sun damage. Those which face north or south tend to retain water and thus are more prone to rot. Don’t forget about tree branches which can break and fall, causing instant damage to a roof, and your profits.
Lastly, keep in mind that roofs don’t last forever. Consider the age of the roof depending on the material of the roof. You can generally expect, barring unforeseen circumstances, asphalt shingles to last about 20 to 30 years. Wood will last 40 to 50 years, if well cared for, and clay will last at least 50 years.
Don’t get caught unaware when it comes to keeping a roof on your rehab costs. We can help you find the perfect hard money rehab loans when you are ready, but do yourself a favor and look hard and long at the costs before you label that property the “Perfect” investment.