If you’re thinking about doing property rehabs, this blog post will reveal 6 things to consider when executing an investment property rehab in The Roanoke Valley – these could determine whether you succeed or struggle!
Rehabbing a property is a lot of fun. But there are pitfalls you’ll face as you acquire, rehab, and sell the property. If you’re not careful, these pitfalls could hurt your chances of a successful and profitable rehab! But we are here to help with 6 things to consider when executing an investment property rehab in The Roanoke Valley…
6 things to consider while doing an investment property rehab in The Roanoke Valley
#1. What Do Your Buyers Want?
This is THE SECOND MOST important thing to decide correctly (the MOST important thing is to buy at the right price). It’s easy to get caught up in choosing colors and selecting counter tops but the most important thing to remember, once you begin the rehab, is that you’re ultimately rehabbing to sell. So make sure you select colors and decorations that buyers want to pay for, and try to stay neutral in most rooms so your buyers can see their furnishings there, without thinking about the “burnt-orange” ceiling you are so excited about.
#2. Speed To Sale
Where a lot of rehabbers get off track is taking their time in different areas, perhaps only working a 6 hour day and then going home, or deciding to take the weekend to think about which light fixtures are the best ones for the house. The sooner you sell, the sooner you make money. Period. So do your planning BEFORE you close on the purchase, and get to work on day 1.
Rehabbers need to work quickly to make money but municipal governments, who grant permits, do not tend to move very quickly. In most localities require a contractor’s license to get a building permit on a home you do not live in. Should you keep working anyway? Should you wait until a permit comes through? We always advise that you remain compliant with local laws but this can be a challenge at times since cities can take a while to issue permits, and come and do inspections.
Your budget, once realistically set, should be set in stone and every decision should be made with the budget in mind. One area in which rehabbers get off track is making many small decisions outside of the budget. Each decision on its own might not seem like a lot but those costs add up fast, and soon you have blown the budget and the house will never sell for what you need to make a profit. (Ahh… “Profit”… That has a nice ring to it!)
Some rehabbers choose to rehab properties themselves and others choose to use a team. A team adds costs to your budget but can get the rehab done much more quickly. It’s more complicated than that because a team can also add scheduling challenges. If you want to have a successful rehab with a team, you need to master the skills of leadership, organization, and patience. Sometimes hiring a general contractor is the best idea.
The sooner you sell your rehabbed property, the better. Therefore, plan to do a lot of marketing regularly to get the most eyeballs possible on your property! If you would like professional marketing help, you can contact our team to market your completed flip home.
Planning to rehab a property? These are 6 things to consider when executing an investment property rehab in The Roanoke Valley to ensure you stay on track and increase the likelihood of success. If you have questions about rehabbing a house, we’ve got over 20 years of experience and would happy to give you advice.
Want to find out more about buying rehab or “flipper” homes? Fill out form below or call our office at 540-777-7000