Rehabbing can be a very profitable business or it can cost you your shirt. The two most expensive repairs can be a new roof and repairing the foundation, although rewiring an old fuse box can be spendy as well. Here we examine the costs and variables that go into replacing a roof and when it becomes a deal breaker.
When you are considering purchasing a rehab, one of the first parts of the house you want to thoroughly inspect is the roof. If you’re not experienced with roof repairs, you’ll want to hire a professional inspector or you could be taking on an unprofitable rehab project. Even when using the basic rehab cost formula of buying for 30% less than the repaired value can get you into trouble if you underestimate the cost of putting on a new roof.
A leaking roof damages much more than only the shingles. By the time there is a leak into the living area, the entire roof system is likely to have serious damage. Besides replacing the shingles (or cedar, or tiles) you’ll have rotted roof decking, damage to the “A” frame trusses, mold in the insulation, and wood, as well as a ventilation problem.
Besides inspecting the rooftop, it’s essential that you thoroughly inspect the roof from the inside of the attic. Look for wood damage everywhere. It can start with the decking (plywood) or be in the framing. One sign that the roof is beginning to fail are rusty nails that are letting rain in. Another important part of the roof system to inspect are the plumbing and exhaust vents. Caught early, these can be relatively inexpensive to repair. But once the surrounding wood starts rotting or molding the repair can make your rehab too expensive to be profitable.