Investors are rooting into a profitable strategy, but little do they know real estate rehabbing is one great deal of investment they often least consider. Whether you will dive into rehabbing houses and dwell on them for personal use or as flippers, it will still be a wise investment game plan.
How to start rehabbing houses?
Venturing into rundown houses can be daunting and challenging at the same time. It will require you tons of work to do. Architectural design and planning? Demolition? Obtaining permits? Materials? What about flooring, painting, and windows? Which one should come first? What are the steps to rehab houses?
I know you wouldn't want to compromise your investment just because you failed to dig deeper; therefore, on your checklist, an eye for detail is a must. With this, sharing with you are the basic steps on how you'll win this strategy one shot at a time.
Inspect the Property
Upon purchasing, the key to a more rewarding investment is capturing every detail
of the property. Thus, a thorough home inspection won't waste your money and time;
negligence will. Additionally, be sure to work with a highly reliable and qualified
inspector. It won't cost you trouble if you hire the right one.
Secure the Property
Addressing the property's security needs is one of the top priorities investors must
consider in real estate rehab because some properties are prone to physical damage,
vandalism, and theft. Leaving them an open door is like welcoming them aboard. Thus,
keeping an eye out will secure your property as much as you want to establish your
Establish a Concrete Game Plan
Planning sets the mood for everything. Thus, creating a logical order of attack will
set the stage for you, giving you the floor to weigh down the property renovation system.
Additionally, along with the game plan is a detailed and strategic scope of work covering
the major repair needs down to the minor ones.
Scope of work must list what a project needs -- repair/renovation details,
construction schedule, the estimated cost, architectural layout and designs, materials,
etc. Basically, it should itemize what the contractor needs to do with a concrete and
realistic time frame.
Work with the Right People
At this point, working with various people can either make or break your project. You
wouldn't want to risk your investment, so choose the people you want to work with; the
contractor -- hiring the qualified one will determine your property's value. Thus, the
contractor's expertise in the job is the game-changer. The contractor must not sugarcoat
plan execution to meet your expectations. Be specific. Know what needs to get done.
Remember, transparency and good communication are essential in building trust and
relationships as you connect with the right people.
Additionally, a snapshot of the contractor's qualification is the ammunition of their
credibility. In particular, experience, licenses and permits, equipment, insurances, to
name a few, will be an attestation if they are tailor-fit for the job. Hence, there is nothing
wrong with being certain because having a straight foot forward will put you on top of
Upon securing everything from paperwork to agreement on budget and time frame,
obtaining permits from the local authorities is required because not having one will tear
down your property. For instance, a permit is essential before demolition takes place. As
complicated as it can be, you can't go through all the rehabbing process without a
Demolition and Rehab Works
Demolition is the entrance door to rehabbing as the actual works start here. This
phase includes trash cleanup, removing of loose debris, interior and exterior works which
cover electrical, plumbing, HVAC, foundation and framing issues, wall and flooring repair,
painting, and a lot more that has to be done depending on what the property needs.
All repairs done will give justice to the property highlighting its restored value. Thus,
good planning and good execution must come side by side to win this type of investing
Upon going through the process, the final wave for rehabbing a house is to verify
that all works are well-executed, ensuring that the completed work is up to par with
standards. Also, having a final walkthrough of the property will conclude that everything
is set and the property is good to go.
It's a wrap!! Setting up the stage to sell the property will leave good impressions
from potential buyers/renters. After months of repairs and renovations, it's now time to
harvest the fruit of your labor.
In conclusion, investing in real estate rehab indeed requires a lot of work, patience, capital, time, intensive research, and planning. For beginners, this type of investment won't sound practical and profitable but, if you dig deeper and take one step at a time, it will take you to places. The journey can appear intimidating and challenging, but the reward is worth it.
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