Imagination Can Bring New Life to Old House : Restoration: Consider the neighborhood, zoning, property taxes and defects before rehabilitating a derelict structure.

A derelict house can be turned into a treasure with a combination of imagination and sound planning.

The first step is to find a restorable old structure, according to an article in House Beautiful, and for this you need imagination and information.

It is important to use your imagination to visualize what a restorable old structure will look like when it is rehabilitated, remodeled or renovated. Then move on to the facts.

You will need an inspection engineer for an in-depth report on the condition of the structure, but there are some simple things you can look for yourself that will allow you to make a quick go or no-go decision.

Look around the neighborhood. Would you like to live here? Who will your neighbors be? If there are people who have already renovated a home, talk to them. Talk to lenders who may be pushing for rehabilitation in the area, and talk to your broker if you used one.

Zoning is another factor. Zoning is supposed to keep residential neighborhoods residential, business neighborhoods business and industrial neighborhoods industrial. But often, spot zoning that mixes business and residential is allowed. In the country, zoning is just as important. Do you want a gas station built next to your restored farmhouse?

Property taxes are a consideration. They usually are based on the property’s value and can be escalated drastically as a neighborhood or dwelling improves. Some locales, to encourage rehabilitation, promise low or no tax increase. Call your county tax agent or have your broker find out what your taxes are and what they will be when your project ends.

If your old structure meets these criteria, look for obvious defects before calling in an inspection engineer--serious fire damage, severe sagging of the roof, severe leaning of a wall or walls, crumbling or wide cracks in the foundation.

Buy the worst in the best neighborhood. The lowest-priced house in a neighborhood appreciates fastest and is more assured of appreciation. You should always think of the resale value of a house, and the most expensive house in the neighborhood is usually the hardest to sell.

Once you decide to undertake major remodeling, restoration or rehabilitation, you need a master plan that includes blueprints showing the dimensions of each finished room and specifications that describe the materials to be used. Based on cost considerations, the master plan will determine what the blueprints and specifications will be.

If walls are to be moved or eliminated, you will need the advice of an architect or architectural designer. Structural defects can be remedied on their advice and on the inspection engineer’s report.