subject: Mistakes to Avoid When You Rehab Properties [print this page] Mistakes to Avoid When You Rehab Properties
According to some people, the good thing about making mistakes is that we learn from it. We won't be able to know how to do something right if don't make a mistake.
It is okay to commit mistakes when you invest in real estate or rehab properties. After all, committing mistakes helps you grow as a real estate investor. But if you make the same mistake over and over again, it will do you more harm than good. You will lose a lot of time and money and miss out other great opportunities to make money in real estate.
If you don't want to be saddled with an unsellable property or to continue losing profits, here are the most common mistakes to avoid when rehabbing homes:
Purchasing a fixer upper home or a handyman special without inspecting the property first. Although hiring a professional home inspector can cost you at least a hundred bucks, spending $100 is better than committing a $10,000 mistake. Always remember that property inspections can prevent you from investing in handyman specials that are beyond repair.
Investing in an undervalued property without doing an appraisal. Never start a fix and flip project without identifying the after repair value of the property you want to rehab. If you don't have an appraisal of your rehab project, then how will you know if the deal is worth pursuing or not?
Doing the renovations on your own. Never attempt to rehab properties all by yourself, even if you have an extensive experience in doing construction and home improvement projects. Because if you do the repairs on your own, it will take you a long time to finish the project. Always remember that the longer the property stays with you, the lower the property's after repair value will be.
Spending too much money on the rehab. One of the things that you should avoid when fixing and flipping homes is splurging on the property's renovations. To avoid this, you should create a budget and make sure that you follow your spending guide to the letter.
Using your personal preferences as the yardstick for the improvements on the property. Always remember that you're not the one who's going to live in the house that you're rehabbing. Thus, you shouldn't impose your own preferences because they may not sit well with the future owner of the house.
To avoid wasting time and money when you rehab properties, ensure that you avoid repeating mistakes that you have committed before. For more tips on fixing and flipping properties, meanwhile, go to www.Rehab-Real-Estate.com.
