What to Avoid When Rehabbing a House
Everybody has been telling you what you should do to be successful when rehabbing a house.
But what about the things you should not lay your hands on? Here is a short guide on the items that you should not do if you want to come out alive of real estate investing.
You should not repair houses without proper inspection.
Let's say you found a property for $50,000 and the owner is willing to slash a few more G's from that price if you purchase the house within the week.
You rush to get the cash ready and pay that owner his $45,000.
After all, you've seen the property and think it only needs a new coat of paint.
You are then surprised to find that the house needs major repairs in the foundation as discovered by your contractor, who of course has more experience in construction than you.
Always remembers, hire a professional home inspector or at least someone who has experience when checking out a property.
You should not repair structural problems.
Once you've properly inspected the property, you must know when to say "no.
" Give it a pass if the house has problems in its foundation or main structure.
Structural repairs will cost you a fortune.
Remember, rehabbing a house is fixing a property but it should also be profitable.
If you have to replace walls or structural beams, you must carefully consider if you have the means to fund those repairs.
Total roof replacement is also very expensive.
You must never say no to cosmetic repairs.
If you must avoid major ones, you must love minor repairs, which are also known as cosmetic repairs.
These are improvements that are done merely to beautify the property.
Rehabbing a house will not be complete without replacing light fixtures, which are very cheap but are effective in raising the price of a property.
Applying a new coat of paint is also counted as cosmetic repair.
Landscaping the yard is also a must repair.
It won't cost you much to trim the lawn and overgrown tree branches but that will surely beautify the house.
When rehabbing a house, you must also survey the neighborhood where your project is located in.
This will help you determine the ARV, or after repair value of your property.
Check out similar properties rehabbed in that area and ask how much they were sold.
Surveying the area will also give you more ideas on the repairs and improvements you are doing.
What paint color will suit the architectural style of that house? How many rooms and baths do houses in that area usually have?
But what about the things you should not lay your hands on? Here is a short guide on the items that you should not do if you want to come out alive of real estate investing.
You should not repair houses without proper inspection.
Let's say you found a property for $50,000 and the owner is willing to slash a few more G's from that price if you purchase the house within the week.
You rush to get the cash ready and pay that owner his $45,000.
After all, you've seen the property and think it only needs a new coat of paint.
You are then surprised to find that the house needs major repairs in the foundation as discovered by your contractor, who of course has more experience in construction than you.
Always remembers, hire a professional home inspector or at least someone who has experience when checking out a property.
You should not repair structural problems.
Once you've properly inspected the property, you must know when to say "no.
" Give it a pass if the house has problems in its foundation or main structure.
Structural repairs will cost you a fortune.
Remember, rehabbing a house is fixing a property but it should also be profitable.
If you have to replace walls or structural beams, you must carefully consider if you have the means to fund those repairs.
Total roof replacement is also very expensive.
You must never say no to cosmetic repairs.
If you must avoid major ones, you must love minor repairs, which are also known as cosmetic repairs.
These are improvements that are done merely to beautify the property.
Rehabbing a house will not be complete without replacing light fixtures, which are very cheap but are effective in raising the price of a property.
Applying a new coat of paint is also counted as cosmetic repair.
Landscaping the yard is also a must repair.
It won't cost you much to trim the lawn and overgrown tree branches but that will surely beautify the house.
When rehabbing a house, you must also survey the neighborhood where your project is located in.
This will help you determine the ARV, or after repair value of your property.
Check out similar properties rehabbed in that area and ask how much they were sold.
Surveying the area will also give you more ideas on the repairs and improvements you are doing.
What paint color will suit the architectural style of that house? How many rooms and baths do houses in that area usually have?
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