Advice for rehabs and flipping
If you’re getting started rehabbing for your rentals or you’re flipping, there are some things you’re gonna want to know before you start buying properties.
First, if you can find a good contractor starting out to help you analyze a house’s true potential that will go a long way and they can help show you what to look for.
You can easily underestimate what it will cost to bring a property up to market standards. Don’t just think about lipstick upgrades, find out if the home has structural issues and figure out what it’s gonna cost to get fixed.
Another big thing to keep in mind is that time kills deals. The longer you’re holding on to a property that you’re rehabbing, the more money you’re losing in opportunity costs. And if you’re new and don’t have the cash you could default on your loan if you don’t sell the property or get rental income coming in soon enough.
Another big mistake a lot of investors starting out make is going all out with upgrades and using top of the line materials for everything. This is not necessary for low to mid valued homes. You will learn the hard way that the return on investment isn’t there most of the time.
People are only willing to spend so much, especially at that income range. So make sure you’re paying attention to houses that have sold in your area and price range so you have an idea of the bare minimum of what the property needs to sell.
If you need more help with any of your properties or have an interest in becoming a real estate investor, join our community Real Estate Skool!
I’ve made a ton of videos covering flipping and rehabs in detail and I’m always adding more. We get together at least once weekly to go over strategy and deals together, and we respond with lightning speed to any real estate questions you have in the community feed.
You might have a lot of reasonable fear when it comes to things like rehabs or flipping if you’ve never done them before, but if you have a team of professionals helping you every step of the way I promise you the game is 10x easier.
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