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The Rehab Step That Creates the Biggest Surprises
Saturday Construction Series
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Monday through Friday, these are designed to be 2–3 minute reads — practical, focused ideas you can use without giving up your day. Saturdays are different. The Construction Series goes deeper and takes more time, because some topics deserve it. Sundays are usually more reflective — less about tactics, more about thinking clearly and staying motivated for the long game.
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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.
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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