Rehabbing an investment property can be a great way to increase its value and maximize your return on investment. However, it can also be a challenging and time-consuming process. Here are the top 6 things you need to know about rehabbing an investment property:
- Have a Plan
Before you start any rehab work, you should have a plan in place. This plan should include a detailed list of the repairs and upgrades you want to make, a timeline for completion, and a budget. Having a plan will help you stay on track and ensure that your rehab work is completed on time and within budget.
- Focus on the Essentials
When rehabbing an investment property, it’s important to focus on the essentials first. This means addressing any structural issues, such as foundation problems or roof leaks, before moving on to cosmetic upgrades. You should also prioritize repairs that are necessary for safety, such as electrical and plumbing issues.
- Set Realistic Expectations
Rehabbing a property takes time and money, and it’s important to set realistic expectations from the beginning. You should expect unexpected challenges and delays and be prepared to adjust your plans and budget as needed. Remember that rehabbing a property is a marathon, not a sprint.
- Hire the Right Professionals
Rehabbing a property often requires the help of professionals, such as contractors, electricians, and plumbers. It’s important to hire the right professionals for the job to ensure that the work is done correctly and up to code. Do your research and ask for referrals to find the best professionals for your project.
- Stick to Your Budget
Rehabbing a property can be expensive, and it’s important to stick to your budget to avoid overspending. Keep track of all expenses and make adjustments as needed to stay within your budget. Remember that every dollar you spend on rehab work affects your potential return on investment.
- Market Your Property Effectively
Once your rehab work is complete, it’s important to market your property effectively to attract potential buyers or renters. Take high-quality photos, write compelling descriptions, and use effective marketing strategies to showcase the property’s best features. The more effort you put into marketing your property, the better your chances of finding the right buyer or renter.
In conclusion, rehabbing an investment property can be a great way to increase its value and maximize your return on investment. However, it’s important to have a plan in place, focus on the essentials, set realistic expectations, hire the right professionals, stick to your budget, and market your property effectively. With the right approach, rehabbing a property can be a rewarding and profitable experience.
If you’re investing in rehab properties in the San Antonio area then make sure you read this blog post because it will give you the top 6 things you need to know about rehabbing an investment property in San Antonio…
Rehabbing investment properties can be fun and can make you a lot of money. But don’t go into it uninformed! Just because the people on those rehabbing shows on TV are doing well doesn’t mean you will automatically cash in big time.
Make sure you know these top 6 things you need to know about rehabbing an investment property in San Antonio.
Top 6 Things You Need To Know About Rehabbing An Investment Property In San Antonio
#1. Not Like TV
A lot of people get into rehabbing because they see people doing it on television. However, you need to remember that television shows are edited down to 30 or 60 minutes, from weeks or months of work, plus they only show you the big stuff – the big money, the long odds, the big wins. Everything else doesn’t make it to air, but you will soon discover that there’s plenty of mundane work to be done.
The absolutely most important thing you need to do when you rehab is to build a plan to determine your time, your steps, the people involved, and your budget. Your plan needs to be detailed, accurate, and account for situations outside of your control.
Part of your planning process needs to accurately account for the cost of the rehab, including demolition, removal, new supplies, installation, and clean-up. But there might be more! What about insurance, garbage dump fees, permit fees, overtime for your team, and maybe a pizza lunch to keep everyone at the property for a little longer.
Don’t skip the permitting process! This can seem like a costly and time-consuming step but if you skip it, it can actually be even worse! Take the time, build it into your plan, and stick with the process.
#5. Cost Of Downtime
Be aware of the cost of downtime. Many new rehabbers don’t realize how expensive it is to have a property that is not being worked. Every hour that the house sits empty is an hour longer that you are paying carrying costs and delaying your income.
#6. Expect The Unexpected
Perhaps the biggest surprise lesson that new rehabbers learn is that you should always expect the unexpected. There will always be something with each rehab that causes a frustration, headache, delay, or extra cost. You need to factor this into your planning and mitigate as much as possible but be prepared to deal with it – whatever it might be.
Thinking about rehabbing? Good for you – it can be a fun way to make good money. However, it’s not like what you see on TV. So use these top 6 things you need to know about rehabbing an investment property in San Antonio to better prepare yourself for success.