subject: Reminders On Rehabbing A House [print this page] Lot neophyte real estate investors tend to get excited with rehabbing a house that they forget the basics of the business. So to keep your eyes on your target, here are some reminders on rehabbing a house beginners will surely find interesting.
Make a schedule and do everything to abide by it. One mistake beginners usually make is starting a project without a schedule. After watching some TV shows, they now believe that they can finish improving a home in their spare time and that they dont need a time line. In reality, rehabbers are always racing against time. Dont forget that when you enter the property, you use electricity for lighting and construction tools. The longer you take in fixing that property, the bigger your electricity bill will be.
Many investors also dont know that a property loses value when it stays too long in the market. Thats why you should fix and sell that house fast. A house is likely to lose value after it has been in the market for at least 90 days. While you are rehabbing a house, it will help if you also start looking for a prospective buyer. That way, you can just turn over the keys to the new owner the day you complete the project.
Like a schedule, you must also make and strictly follow a budget for repairs. Always remind yourself that you are improving that property so you can sell it for profit, not because you want to live there. Beginners must set their minds to making as much repair in as little costs. This is not followed when they repair the property based on how they envision their dream home would be. They tend to make unnecessary repairs because of their personal preferences.
Another reminder is to be ready for the worst. What if the property doesnt sell immediately? Will you just allow it to depreciate? Here is where the importance of having an exit strategy comes into play. One option you have is to rent it. If you are in a college town, you can even rent it per room. Another possible exit strategy is selling your house and then moving into the property you rehabbed.
Finally, your mind and heart should be ready for rehabbing a house. Ask yourself if you really want to do this physically demanding business. You cant stop midway as that will likely result in losses. Condition your mind too by learning more about rehabbing a house. Go to Rehablist.com and read articles about real estate investing.
by: Daniel Mc Grey
welcome to Insurances.net (https://www.insurances.net)
