Rehab with a Purpose
One of the biggest mistakes that new real estate investors make on rehabs is that they for the purpose of the rehab. It is VERY important that you stick the the plan and don’t get emotionally attached to the rehab.
- Don’t Over Rehab If properties in the neighborhood have linoleum floors you might want to stick with linoleum or an expensive tile but anything more expensive than that will not increase your return.
- Don’t Get Attached Don’t get attached to the property or the rehab. Its not a work of art and your not going to live there. Don’t get emotionally attached to upgrades, make it nice but don’t go too far.
- Know Your Costs With all the online resources there is no reason that you don’t know the cost of the materials needed. From day one you should have an idea of the materials needed and the cost of these. Eliminate as many surprises as you can.
- Stick to the Plan. Keep the rehab purpose. If are rehabbing a high-end flip, keep it that. If you decided to turn it into a rental when you finish it, your numbers will NEVER work. If you are rehabbing a rental, keep it a rental.
Remember., Rehab with a purpose.