Recently, we’ve been taking a look at how properties with potential can go from drab to dazzling in the blink of an eye. As a long-time real estate investor, I love to tackle a rehab that brings added value to a property and makes it look incredible. There’s simply nothing that compares.
At the same time, if you’re new to the investing or rehab game, you might be wondering what the rules really are. Ultimately, every single property is slightly different, but over the decades, I’ve learned several guidelines that are flexible enough to apply across the board. And today, we’re going to take a look at them, so you can become a pro yourself.
Utilize your attention to detail
From the moment you step into your potential rehab, you should start noting the details. And depending on your property, we may be talking about going beyond a quick paint job or new carpet. The reality is that you want to update the home in ways the compliment that specific property.
Research the area properties
When you’re rehabbing a property, before you buy, you should be looking at the comps in that area. Next, I also recommend getting a sense of what may be trending as well, in terms of home amenities or styles. This can help give you perspective as you make your decisions.
Get a sense of the national design trends
And speaking of styles, design trends that are going national are also a source of inspiration. While not every trend will match your rehab, some might, and others may even be expected. A great example of this is the recent sweeping trend of stainless steel appliances.
Forget your personal preferences
One more comment on styles and upgrades. When rehabbing, you might be tempted to add exactly what you would love in that property. And sometimes that’s okay, if it’s right for the property and commands a higher price in the end. There’s also something to be said for a subtle personal touch, but on the whole, you should forget about the personal preferences that might clash with the property or make it more difficult to sell or rent.
Understand your permits
In many cases, when you’re rehabbing your property, you’ll need to pull permits. Now, if you have a professional team at the ready, they may handle all of this for you. However, I still like to have a general idea of the permitting process for a rehab, at the very least to factor into budgeting ahead of time.
Know your budget
I can tell you that if you’re new to rehabbing, you might want to consider pairing up with a seasoned mentor. This is because too often, those who are new to the game can overblow their budget. In fact, it can be very easy to do, even if you have a rehab or two under your belt. By knowing your budget is spot on you’ll ensure that your rehab works for you.
Pay attention to timing and schedules
You do have a timeline for your rehab, right? It’s rather easy for a potential rehab to stretch on indefinitely if you don’t have a firm schedule. That doesn’t mean you can’t be flexible, but having a timeline allows you to track where you need to be to start getting your investment back in the most optimal way.
Are you new to rehabbing properties? Whether you intend to rent or flip, I’m always happy to answer any questions you may have
Terry Records
Broker/Owner
Records Results Real Estate
Residential Sales and Property Management Service