BiggerPockets Real Estate Podcast

Home Renovation Q&A: Permits, Building a Scope of Work, & Managing Renovations

Apr 11, 2025

This discussion dives into the challenges of home renovations, focusing on unpermitted work and how to manage it effectively. Learn the vital steps to build a robust scope of work and the importance of obtaining permits. There’s valuable insight on how to handle renovations remotely, especially for first-time investors tackling house hacking. Explore techniques for conducting thorough property assessments and maximizing rental income through strategic renovations. This episode is packed with practical tips for successful real estate investing.

36:38

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Quick takeaways

Understanding local regulations and consulting with code enforcement is essential before purchasing properties with unpermitted work to avoid liabilities.

Creating a detailed scope of work and maintaining communication with contractors are crucial for successfully managing renovations, especially from a distance.

Deep dives

Navigating Unpermitted Work on Properties

Investing in properties with unpermitted work can present significant challenges and liabilities, especially in regions like New York where regulations are strict. Buyers should first consult with local code enforcement to determine the necessary steps for bringing a property up to code before purchasing. Understanding the scope of previous renovations, including what was done without permits, is crucial in building an accurate budget and timeline for permitting. Conducting due diligence can not only help prevent potential liabilities, such as legal actions from tenants, but also ensure that the property maintains its value for future projects.

Intro

2min

Navigating Permits and Property Investments

7min

Navigating Home Inspections and First-time Investment Strategies

6min

Mastering Real Estate Analysis through Practice and Community Engagement

2min

Maximizing Income through House Hacking Strategies

3min

Mastering Property Analysis for Efficient Investment Decisions

2min

Navigating Your First Home Renovation: Scope of Work and Management Tips

5min

Navigating Property Renovations

9min

Maximizing Resources for Home Renovation Investments

2min

Does your rental property need some updating? Maybe you’re buying a house with unpermitted work, and you’ve got to go back and fix a few problems. Or, this could be your first home renovation as you try to squeeze some sweat equity out of your property. Regardless of your situation, if you’re planning a home renovation, you’ll need to know how to do a few things: build a scope of work, pull permits, manage contractors, and ensure the job is actually getting done. We’ll help you do all of those today!

We’re taking questions from the BiggerPockets Forums today and answering topics like:

What to do when your home has unpermitted renovations

How to analyze your first rental property or house hack

How to build a scope of work to ensure you get the HIGHEST appraisal value

The best way to check in on renovations, especially if you’re investing out-of-state

Some of these seem tricky if you’re a first-time investor, but don’t worry, ANYONE (even a newbie) can handle a home renovation IF you take the right steps and follow our suggestions.

In This Episode We Cover:

Should you EVER buy a house with unpermitted renovations? And how to get permits retroactively

How to analyze your first rental property (or house hack) to make sure it’ll pencil out

Building a scope of work (SOW) so you have a bullet-proof renovation plan

How to check in on your home renovation if you’re investing from a distance

The one contract contingency to add IF you’re worried about renovations the seller made

And So Much More!

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