What To Look For When Rehabbing A Property [Walkthrough Video]

Last Updated on August 27, 2025

In an episode of Tax Lien TV, our team bought a row house at a tax-deed auction in Philadelphia. We got it for just under $40,000. The house is on a quiet street that’s not busy. It sits on a hill and has been empty for a while. In this guide, we’ll go through the video walk of the house in detail. Plus, we’ll give you a checklist to help you inspect a property you’ve just bought. This way, you’ll know exactly what to check when looking at a new tax-deed property.

Why inspect immediately after purchase?

Auction properties are usually sold “as-is.” This means you might not get to look inside before you place a bid. If you buy a property, it’s a good idea to check everything after the sale. Sometimes, you find big problems like issues with the building or costs you didn’t expect. For example, in one case, the front steps were falling apart. The windows were broken because other bidders tried to get inside. If you don’t take a close look, you might miss these issues.

Exterior inspection: steps, windows and doors

• Front steps: As the group gets closer to the house, they look at the neighbor’s fixed steps. Those steps are in good shape, while the ones on the auction house are falling apart. It’s a good idea to check for any loose or broken concrete. After that, they should think about how to fix or replace the damaged steps.
  
• Broken windows and locks: The front window got smashed by some auction buyers who just wanted to take a look inside. They also broke the lock, so you’ll need to buy new locks and replace the window glass.
  
• Entryway and unique features: In Philadelphia, some row houses have walkways up high that connect neighbors’ kitchens. Dory points to a door that doesn’t open well, which leads to one of these walkways. It’s kind of quirky how the doors don’t line up right. This could mean the building is shifting.
  

Interior inspection: holes, plumbing and finishes

• Janky patches and holes: Inside the living room, there’s a hole near the wall and window that looks like someone tried to fix it but didn’t do a great job. You should check for any quick fixes that might be covering up bigger issues.
  
• Old cast‑iron plumbing: Dory notices some old cast-iron pipes behind the patched area. Over time, cast iron can get rusty and blocked up. It often makes sense to swap them out for plastic pipes like PVC or PEX.
  
• Rusty metal counters and dated finishes: The kitchen has metal counters, and they are getting rusty. If you rent the place, you might want to think about fixing or changing the cabinets and counters. This can make them stronger and look nicer.
  
• Ceiling fans and outlets: Make sure fans are working well and that the outlets are safely grounded. A few small upgrades can help save energy and make things work better.
  

Structural red flags: sinking corners and shoring

• Uneven door frames: The door to the neighbor’s kitchen is not straight. Dory says one corner of the house is sinking a bit. This means it needs support. Fixing the structure can cost a lot, so it’s smart to ask a contractor for help if doors or floors don’t look right.
  
• Basement condition: Even though the corner is sinking, the basement still gets a “B+” rating. When checking basements, look for signs of water, walls that might be bending, damage from bugs, and old wiring.
  
• Missing water meter and utility theft: The last people who lived here took out the water meter and made a way to get water without paying for it. Dory says that stealing utilities is a big problem in Philadelphia. If someone buys a house without going to an auction, they might have to pay for bills the last owners didn’t pay. It’s always a good idea to check the water and electric services. Also, make sure to set aside some money to put the water meter back in.
  
• Big timbers and sloping floors: In one room, the team finds large timbers that were brought in to shore up the floor. A radiator is sinking, and the floor slopes so much that a marble would roll across the room. They plan to correct the structural issue before renting the property.
  

Renting vs. reselling: estimating the rehab budget

Dory thinks the biggest cost will be fixing the corner that is sinking. Once that part of the house is safe, making it ready to rent shouldn’t cost too much. When you plan your budget, keep this in mind:

• Prioritize safety and structure: First, fix any big problems with the building. After that, take care of broken steps, windows, and locks.
  
• Replace outdated plumbing and utilities: Take out the old cast-iron pipes. Put the meters back in and check that the electrical and gas lines are safe and follow the rules.
  
• Consider cosmetic upgrades: Fresh paint can make a room look clean and nice. New cabinets can help too. Modern fixtures like light switches and faucets can make things feel updated. All of these changes can help rent the place faster without spending a lot of money. They make the home more appealing to people looking to rent. Simple updates can really make a difference.
  
• Plan for contingency: Sometimes, things don’t go as planned. To be safe, add a little extra time or money, usually around 10 to 15 percent. This helps if unexpected problems come up

Frequently asked questions

Next steps

After your walkthrough, create a rehab checklist based on the issues above and obtain estimates from contractors. If you’re new to tax‑deed investing, consider attending an auction trip or exploring our resources.