Several of my students are in the middle of rehab projects. So I’ve been doing in-depth training on tips for rehabbing that can help generate a lot more profit. It’s a way to get a lot more money from the properties that you sell. I feel it’s important to share this information with all of you on today’s episode because all real estate investors can benefit from these tips.
In a flip, extra money should only be spent on items that can be seen. What I meant by that is anything that needs to be replaced that’s behind a wall, it doesn’t have to be a name brand or the most expensive. As long as it’s approved and efficient, it will work just fine.
The items of high quality should be the ones that buyers will see and touch such as:
- Wall and ceiling surface or texture
- Interior doors
- Exterior doors and locks
- Kitchen and bathroom cabinets
- Counter tops
- Kitchen sink
- Bathtubs and shower
- Bathroom accessories
- Ceramic tile – floors and shower walls
- Ceiling fans and light kits
- Closet Shelving
- Accent lighting
- Exterior siding, lighting and decks
- Air conditioner
- Hot water heater
- Washer and dryer
- Mirrors and medicine cabinets
These will give a buyer a feeling of extravagance and pride. Pick a few of them to focus on and upgrade compared to what they’ll see in other homes of the same price range in order to get the best price for your property.
In addition, when you chose a location to buy a rehab property, you have to look into the code enforcement and restrictions in that area. If they are rigid and time consuming, it might be a better idea to search another neighborhood where you will have less restrictions and get approved much faster.
When it comes to rehab, wise choices go along way in determining how much project you will make. If you want more tips on how to become a better real estate investor, sign up on www.larryharbolt.com to receive more information.
Podcast: Play in new window | Download