Did you know that you can begin your real estate investment journey with a 5% down payment on investment properties like rehab homes?
Rehab homes are great initial investments for entry-level real estate investors. Read our article to understand why a property rehab project is a lucrative opportunity for real estate investors!
A Low Initial Investment Opportunity
The beautiful thing about real estate rehab is the low point of entry. A rehab property for sale has noticeable flaws. Don’t worry, this is a great thing for investors!
Rehab homes are full of potential. They are a low investment opportunity that is great for those with a vision. Once the home is gutted, it can become anything you want it to be!
You must visit a rehab property in person to gain a deeper understanding of what the project entails. Online photos and videos can only relay so much information.
Use all of your senses to understand how much it will take to rehabilitate this property. If the project seems manageable, then begin to dream up a new design.
Decide the Project Size You Can Handle
Real estate investing is always a risk for inexperienced investors. Entry-level investors should stay within their comfort level.
Taking on a project that is tougher than you imagined can pose a serious financial risk. Decide the project size you can handle before you begin searching for available lots.
The project size refers to a combination of lot size, property cost, and amount of work required. A small lot size may require a huge amount of renovation.
However, a large real estate rehab project may require fewer renovations than imagined. Keep your project size and budget in mind before investing in a rehab project.
Draft a Bulletproof Blueprint
Your blueprint will become your lifeline, so make sure it is bulletproof! If you are inexperienced, then be sure to consult professionals.
Drafting a bulletproof blueprint for rehab homes can be both a fun and rewarding experience. Begin by taking into account all of the necessary repairs.
Next, consider optional repairs and renovations. Do you have room in your budget for these optional changes?
If so, then work them into the bulletproof blueprint! Allow this guide to navigate you through the renovation process. If things become chaotic or confusing, always refer back to your master plan.
Cathartic Construction: Property Rehab Therapy
Rehabilitation is not just for the homes you invest in. Rehabilitating a property can be a rehabilitation experience for yourself as well.
Share the catharsis with your friends and loved ones. Ask for their help while you are completing your house rehab project. Your peers are a great source of free labor to help you get the job done.
Speaking of getting the job done, make sure not to cut any corners. The only thing more unappealing than a rehab home is a poorly renovated property.
Tenants will be able to tell if you cut corners. Do yourself a favor, spend money where it matters. Investing in a quality renovation project will pay for itself if it is done correctly.
Property Rehab 101 Contract Out the Hard Jobs
If you and your partner are not able to complete the project alone, then contracting is the next best thing.
If you are unsure about a certain renovation project, then always hire a professional. It is better to pay someone to do a quality job than to injure yourself in the process.
When you hire a contractor, be sure to have an easily identifiable paper trail. Save all of your receipts and lines of communication to ensure that you and your rehab project are protected.
Facilitate Smooth Communication
Facilitating smooth lines of communication can help avoid any mistakes during the rehab renovation.
Investment properties and rehab homes involve many steps and people along the way. Be sure to communicate your goals clearly so that everyone can easily stay on track.
Decide a timeline that you would like your rehab house to be completed. Keep in mind that you may not meet your goal. It is better to postpone your timeline to get a job done correctly and safely.
Choose an Attractive Aesthetic
While redesigning your rehab house, choose an attractive aesthetic to build off of. Be careful that you do not fall prey to current trends.
In order to avoid constant updating, choose design styles that are classic and timeless. This will help you attract a wide range of people and ensure your investment’s profitability!
Hardwood floors and cabinets add a sense of luxury that is highly sought-after. Cosmetic rehab options are plentiful, so you are sure to find exactly what your new rehab home needs!
Design with Tenants in Mind
Designing with tenants in mind means catering to the desires of your target audience. Most renters enjoy open floor plans and modern appliances.
Working that into your blueprint can help you organize your cosmetic rehab project. Real estate investing does not have to be confusing or complicated.
Always keep profits in mind and stick to your blueprint. This is the key to a successful house rehab project.
Ready to Rehab a Property?
Now you know all of the reasons why a property rehab project can be a lucrative opportunity for real estate investors!
Are you ready to begin your rehab property investing journey? If you still have questions or concerns, contact our office so that we can help point you in the right direction. Good luck!