Perhaps the biggest single expense that will make or break a real estate investment is the roof. Can you let it slide with what is currently on the house or do you have to replace it? That’s a very good question. The answer is quite simple…it depends.
Roofs and their lifespans differ greatly depending upon the type of roof you have and where in the world the property is located. Sun is going to beat up a roof in Florida much more than it will in North Dakota, but North Dakota has snow. Florida has hurricanes. Some Florida homes have barrel tile roofs which have a much different life-span than shingle roofs. The type of roof and the location of your property will also have a huge impact on price. I’m sure the cost of a roof in San Francisco will be significantly more expensive than a roof in the rural Midwest even if the same materials are being used.
Understanding how roofs are priced is very important. Roofers quote roofing costs “per square.” A square in roofing terms equals one hundred square feet, so be sure you are clarifying what they are quoting you. I’m sorry for those of you that failed geometry in high school, but roofers use the good old Pythagorean Theorem and geometry to calculate the total number of “squares” in a roof. As you know, most roofs have a “pitch”, or the rise of the roof. We won’t waste time on teaching geometry in this article, but you can simply search for it on the web. We will, however, talk about the concept of pitch.
As you know, the steepness of roofs vary greatly from one roof to another. This will impact how much surface area you will need to cover with shingles. The steepness of the roof is known as the “pitch”. To determine the pitch, measure horizontally (parallel to the ground) 12 feet from a point on a roof facet. Then, measure upward from the that point at a right angle to where it hits the roof. If you have to measure up 3 feet, then the roof has a 3:12 pitch.
Many roofers also avoid using good old fashioned geometry by using a standardized multiplier based on the pitch of the roof. The roofer first starts by measuring the dimensions of the base of the house to get a square footage. They then multiply that square footage of the base by a multiplier that corresponds with the pitch of the roof. For instance, the multiplier of a 3:12 pitch would be 1.15, so a house with a 60 foot by 50 foot house with a 3:12 pitch would be calculated by first determining the square footage of the base, or 60 X 50 = 3000 and then using the multiplier to come up with a surface area of 3000 X 1.15, or 3450 square feet. A roofer would call that 34.5 squares. The problem with this method is that many roofs have multiple facets with different pitches. Personally, I still calculate the surface area by measuring each facet and using basic geometry to come up with the size of the roof’s surface area.
Be careful as different roofers will come up with different numbers with respect to the area of the roof. You have to first do your math to understand the true area of your roof. It’s not common core math. It’s a geometry problem with only one answer. Don’t let an unsavory contractor fool you into paying more than you should. Many roofers will try to take advantage of you. Be careful.
Another area where roofing quotes will differ comes with the “waste” that is customarily calculated into the quote. Waste is normal with a roof as shingles will have to be cut and thrown away. As you receive quotes, note the amount of waste that is being built in to each quote. You might be able to negotiate with your roofer if they are calculating more waste than other bids that you get.
One must also pay close attention to the type of roofing material that will be used in the job. One roofer might quote you for 3-Tab Shingles that have anywhere from a 12-20 year lifespan depending upon your climate. These shingles are typically the cheapest style that are quoted. Another roofer might quote you Architectural Shingles which are a step up from 3-Tab, but are more expensive and typically have a longer lifespan. You can go up from there with such types of shingles as metal, solar, and wood, but keep in mind the type of rehab you are doing. Will you get the bang for your buck by going with a higher-end shingle? That greatly depends upon your area and price-point.
Surprises happen in home renovation. That is a fact of life. Roof replacement is no exception. When you pull roofing shingles off, it is not uncommon for the roofer to have to replace plywood and, the more expensive repair, roof trusses. In their quote, a good roofing contractor will provide you up front with the cost of these repairs. For instance, they will tell you that each sheet of plywood used will cost you an additional X number of dollars. Be sure to build in these unexpected contingencies into your budget and rejoice if they don’t have to use what you build in.
Not all contractors are the same. Many take short cuts. It is critical that you ensure that the roofing contractor has the appropriate licenses that are necessary in your area. You also must insist that they pull the appropriate permits that are necessary for the job. Nothing is worse than paying a roofer for a job only to have the local authorities come after you for not pulling permits. It’s true that there is a cost to pulling a permit, but it’s a lot less expensive than not pulling them. There is a wise saying that goes “If you think it’s expensive to hire a professional, it’s even more expensive to hire an amateur.” Always be sure you’re doing the right thing. It will pay off in the end.
In short, roofs aren’t cheap. Many investors skip doing the roof and roll the dice that buyers won’t care. It has been my experience that the age and remaining lifespan of a roof is a very important factor if you are flipping a property, particularly in an area that has higher price-points. Renters don’t care as much as long as water isn’t dripping on their heads. Only you can make the determination if replacing a roof is worth it. If do you choose to replace a roof, however, be sure you do it right.