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Small drywall nail holes or shallow dents can be repaired pretty easily with a little bit of compound and a taping knife. Using a 4 inch mud knife apply the mud in two directions(left to right and up and down) to work the mud into the hole properly. Let the mud dry, wet sand it smooth with a sponge and then prime and paint. Nails will sometimes pop through the surface if they are not holding properly. To fix this, first re-sink the nail with a hammer. Then drive a new screw in next to the nail to hold the board into the framing. Apply mud over both fastener heads. When they dry, you can sand and prime over them.
Patching Larger Holes:
Larger holes are difficult because there's no backing material behind them. There are a few ways to build new backing. One way is to take a piece of plywood, slightly larger than the hole, and tie a string through the middle of it. Insert the plywood into the hole and pull the board up tight against the back of the board. Then while holding it tight against the backside of the board insert screws through the board into the plywood being very careful not to go to deep. With the plywood secured, cut the string and apply the first coat of mud to fill the hole. To help strengthen the patch you can apply tape to the seams. Then, feather out the compound around the hole with a wide knife. Let it dry and sand it smooth. For really large holes you will need to locate the vertical studs in the walls and then cut the board from the center of one stud to the other to have something to nail to as well as having support for the existing board. Cut the board to fit the new opening and bevel the edges of both the old as well as the new piece. Attach the new piece to the studs and re-nail or screw the old edge to the wall studs. Now you are ready to tape and mud your new patch!!
Go to drywall finishing!
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