The Rehab Step That Creates the Biggest Surprises

Saturday Construction Series

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The newsletter is written by Roger Blankenship, a long-time real estate investor and best-selling author. We let him use his own words — we just trim a few (hundred) of them to keep most weekday editions to a 2–3 minute read.

The Editors

What Rehabbers Must Know Before Opening a Wall

Opening a wall is one of those rehab moments that feels small… right up until it isn’t.

It can be a Pandora’s box: rot, mold, knob-and-tube wiring, broken plumbing, termite damage, structural surprises, missing fire blocking, DIY electrical “creativity,” you name it.

But here’s the part investors learn the hard way:

Not opening the wall—when you should have—can be worse.

When a house is dated, has signs of moisture, or there’s any reason to suspect hidden defects, skipping investigation can expose you to serious liability later. I personally know a homeowner who bought a flip and won a $360,000 judgment against the investor. Not me—but it’s real. And it’s the kind of result that changes how you underwrite risk forever.

So let’s talk about how to open walls the right way—technically, financially, and legally.

1) Know Why You’re Opening the Wall

“Because we’re remodeling” is not a reason. It’s a description.

A reason sounds like this:

  • Evidence of leaks: stains, bubbling paint, soft drywall, musty smell

  • Age risk: older homes with unknown electrical/plumbing history

  • Scope triggers: moving kitchens/baths, adding fixtures, relocating HVAC

  • Prior DIY: unpermitted additions, funky outlets, odd switches, patchwork ceilings

  • Exterior clues: cracked stucco/brick, failed flashing, window leaks

  • Floor clues: sloping floors, bounce, sag, uneven transitions

  • Pest evidence: frass, tubes, droppings, damaged sill plates

If you can’t write a one-sentence reason, you’re gambling with your budget.

2) Start With “Non-Destructive” Clues Before You Demo

You don’t always need to gut first. A good operator gathers evidence cheaply.

Tools and techniques that save money:

  • Moisture meter on suspect areas (drywall, baseboards, window corners)

  • Infrared camera (or a competent inspector with one)

  • Borescope through a small hole behind baseboards or in closets

  • Attic and crawlspace inspection (often reveals the truth without touching drywall)

  • Electrical panel review (brand, wiring types, signs of overheating)

  • Plumbing supply type identification (galvanized, polybutylene, copper, PEX)

  • Roof penetration and flashing checks above stained walls

  • Exterior grading and downspout discharge inspection

If you see consistent red flags, you’re not “opening a wall.”

You’re confirming what you already suspect.

3) Permits: The Question Is Usually “When,” Not “If”

A lot of flip disasters start with this mindset:

“We’re just doing cosmetic work.”

Then you open the wall and discover you’re touching:

  • wiring

  • plumbing

  • structural framing

  • insulation / vapor barriers

  • fire blocking

  • HVAC

That’s not cosmetic.

Permits aren’t just bureaucracy. They create a paper trail that you acted reasonably, used licensed trades where required, and brought work to code. That matters if you ever end up in a dispute.

Rule of thumb:

  • If you’re altering mechanical, electrical, plumbing, structure, or adding/removing walls: assume a permit.

  • If you’re unsure, ask the building department or your GC. Document the answer.

4) Safety and Hazard Reality Check

Before you start cutting drywall, remember you might be dealing with:

  • Lead paint (common in older homes)

  • Asbestos (old insulation, tape/mastic, some textures, flooring layers)

  • Mold from hidden moisture

  • Rodent contamination in walls/attics/crawlspaces

This isn’t just about worker safety. It’s about:

  • proper containment

  • legal disposal

  • avoiding contaminating the whole house

  • avoiding a buyer discovering it later

If you suspect it, don’t DIY the risk. Bring in the right pros.

5) The Big 6 Surprises Behind Walls

When you open a wall, you’re usually looking for some version of these:

1) Moisture intrusion

  • roof or flashing failure

  • window leaks

  • plumbing leaks

  • condensation issues due to missing/incorrect vapor barrier

Fixing the symptom (fresh drywall) without fixing the cause is how lawsuits are born.

2) Electrical issues

  • improper splices outside junction boxes

  • overloaded circuits

  • missing grounds

  • old wiring types that require upgrades in many jurisdictions

  • improper GFCI/AFCI protection where now required

If you’re flipping, electrical shortcuts are a very expensive kind of “savings.”

3) Plumbing problems

  • galvanized supply lines near end-of-life

  • polybutylene supply lines (major red flag)

  • hacked drain lines with improper slope/vents

  • concealed leaks at fittings

A “small leak” inside a wall is rarely small by the time you see it.

4) Structural problems

  • cut studs for plumbing/electrical without proper reinforcement

  • missing headers

  • undersized or damaged framing

  • sagging from prior water damage

Don’t let a handyman “eyeball” structure. That’s how you buy future pain.

5) Fire and life-safety deficiencies

  • missing fire blocking

  • improper penetrations

  • garage-to-house separation violations

  • unsafe venting of combustion appliances

These aren’t “nice to have.” They’re safety items.

6) Insulation/air sealing issues

  • missing insulation

  • poorly installed insulation

  • major air leaks

  • moisture trapped in wrong layer assemblies

This is where comfort complaints and condensation problems start.

6) Budgeting: You Need a “Discovery Contingency”

If your budget can’t handle discoveries, you aren’t ready to open walls.

Typical best practice:

10–20% contingency on rehab budgets, more for older homes or unknown conditions.

And treat contingency like a real line item—not a wish.

Also: build your schedule with reality.

  • opening walls often triggers inspections

  • inspections trigger trade scheduling

  • trade scheduling triggers delays

  • delays cost money

7) The Right Way to Open a Wall (So You Don’t Create Damage While Looking for Damage)

This is a technical process, not a rage demo.

Do it like a pro:

  • Start with a small exploratory opening in the highest-probability area

  • Cut clean lines and save drywall pieces when possible

  • Identify what’s in the cavity (wiring, plumbing, venting) before widening

  • Photograph everything: before, during, after

  • Tag circuits and shut off power when needed

  • If you find a major issue, stop and reassess scope and budget immediately

Exploratory openings are cheap. Full gut reactions are not.

8) Documentation and Disclosure: Your Liability Shield

This is where rehabbers either protect themselves… or leave a trail of problems.

Protect yourself:

  • Photo log of discoveries and repairs

  • Copies of permits and inspections

  • Invoices from licensed trades

  • Materials lists for major systems

  • A written “scope change” record if discoveries altered the plan

And if you’re selling the property:

  • disclose known material defects as required in your state

  • don’t “cover and forget”

  • don’t let your contractor convince you something isn’t worth mentioning

  • use a competent real estate attorney if you’re uncertain

You’re not trying to be dramatic. You’re trying to be defensible.

9) The Core Principle

Here’s the balanced truth:

  • Opening walls increases your chance of finding expensive problems.

  • Not opening walls increases your chance of missing expensive problems.

  • Missing problems can become your liability after the sale.

So the right approach isn’t fear.

It’s discipline:

Investigate intelligently.

Document thoroughly.

Repair correctly.

Disclose appropriately.

That’s how you stay in the flipping business long enough to enjoy the profits.

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