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Rehabilitating real estate may sound like a dream come true. How many television programs and reality shows glamorize the process? Real estate rehab seems to happen overnight. Walls are removed, paint is applied so artfully that it looks like someone has brought the dead back to life, and an electrician materializes out of nowhere and fixes the damage from a small fire. Rehabbing is definitely exciting, but it also requires a lot of forethought and expertise that may not be evident in these TV shows. So here are some helpful tips to make your rehab project enjoyable and successful. Real estate rehab can be tricky and sometimes time-consuming, but it can also be very rewarding—both financially and personally. One important step is to decide up-front what your strong suit is, realistically. One of the biggest mistakes that people make is not knowing which of the two ends of the spectrum of rehabbing they want to concentrate on. Are you an investor who wants to flip homes mainly for profit or are you a person who enjoys the process of doing the work and wants to be a self-employed rehabber? Decide in advance and you’ll be able to proceed and maximize your profits. Also decide what your goals are in rehabbing and how you will best approach your project for desired results and profit. Because many people enjoy the process and can get carried away, it is important to establish a plan. Make you have a plan that includes: 1) a budget that considers structural issues, such as plumbing, electrical needs, or other items and 2) an outline of the process for administrating the project, including things like how you are going to keep track of your estimates and receipts. Decide in advance—the more you think ahead, the more successful your real estate rehab will be. When doing a rehab, also be sure to hire the right people for the right kind of project. Although you may feel you are qualified for certain jobs, and may be able to save money, some jobs are best left up to professionals. Consider factors like time and complication of the project. Building codes are one important consideration in this process. So divide the rehab needs into the cosmetic ones that you can do: trash removal, carpets, floors, painting, replacing warped panels and cabinets. Others include safety issues that involve building codes and other complicated issues; these should be left to professionals. For your first projects, hire professionals for roofs, electrical, and plumbing issues, and any special requirements in your area, and you will have a very successful real estate rehab. Taking this approach will ensure a much smoother and successful project and savings in the long-run.
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