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8 Ways to Tighten Up Your Rehab Process

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8 Ways to Tighten Up Your Rehab Process

June 6, 2016

Like any successful endeavor, when you’re ready to rehab a property, you need a plan. A surefire way to waste valuable time and money is to go into a project helter-skelter—everything needs to be done according to a plan and in the right order. Here are some tips that can help you on your next property renovation.

DUE YOUR DILIGENCE

First things first—walk the property inside and out. Make thorough notes about repairs and upgrades you want to make based on your exit strategy.  Assess the neighborhood where the house is located and choose improvements suited for the area or renter. Over- or under-improving a house can make it harder to find a buyer or tenant. These things should also be part of your budgeting process:

  • Anticipate problems and plan contingencies. All budgets need a plan B.
  • Factor in holding costs, sales commissions, and other expenses that can eat into profitability.
  • Make sure that your after repair value (ARV) or rental rates are properly analyzed.  Local realtors are a resource to assist with ARV estimates and rental comparables.
  • Ask other investors for contractor referrals.  Make appointments with them before closing on the property—remember that good contractors are booked in advance.  Have a detailed plan of your project ready to share to ensure all contractors are on the same page when it comes to deadlines.  Request examples of their work currently in progress.

UNDERSTAND AND WEIGH YOUR CAPITAL OPTIONS Read More...


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