Rehabbing houses can be easy or difficult, depending on how you view it. One thing’s for sure though: it is rewarding for those who do it right. So to be able to join the legion of rich people spawned by real estate investing, here are some of the things you must know about rehabbing houses:
It is a fast-paced business. A project may last for just weeks and sometimes a couple of months. Take note that you must operate as fast as you could. That is why rehabbing houses is also known as fixing and flipping homes. A repaired property loses value the longer it stays unsold. Expect a drop in the amount offered by buyers after the 90th day of that house in the market. To avoid this depreciation, you must make a time-line before you start a project. List down your date of commencement and target date of completion. Set daily and weekly goals and be sure to accomplish them.
It demands skill. This should not be a problem if you are a handyman, or someone who loves doing odd jobs. You would probably know how to replace roof shingles and busted light bulbs, unclog water pipes, and even lay carpeting. If you do not have the skills to do household repairs, you can always hire professionals. A lot of rehabbers employ a team of workers to make sure they finish the project on time.
There is no room for attachment to a property in rehabbing houses. A lot of neophyte rehabbers commit this error and they don’t even realize it. Remember, you must always keep your personal preferences in check whenever you are implementing repairs. You may lose track of your repair budget if you don’t watch out for those personal preferences. One classic example in the real estate investing world is the flooring story. Sometimes, rehabbers get a house that has a decent wooden flooring. All it needs is a little wax and it will shine like new again. If you personally prefer carpet over wooden flooring, you might spend on carpet even when that is unnecessary because the current material will actually do.
It needs little financial capital. One reason for this is t