Sprucing up the tail and trying to make it look like the head. Doing it right without falling in love with it. Rehabbing and going into debt 101.
There are four ways to do it and one way will take you under for the count.
The first way would be a major cleanup and cleanout. Park a pickup, dump truck and or a dumpster outside. Dispose of all personal contents, soiled carpeting and furniture. Cut the grass, attend to the landscaping, de-odorize, repair leaks, and generally make it look like it has potential. This first level will make it presentable to wholesale to another investor. If you are going to keep, it enables you to see beyond the trash and envision the potential.
The second step would be to repair the obvious small items, and major items that are a must to make the property habitable and be able to gain occupancy permit. The remaining would be to freshen up the interior and exterior with a new coat of paint and clean all the surfaces. This will now enable you to rent the property and or a rent to own. In many cases, if you supply the materials, you can horse trade with the tenants to do more of the work. Be sure of their capabilities and your liabilities.
The third step is not for the beginner and or the faint of heart. Many properties that are bought really right need lots of major repair work that is why the price as it was. This may require a need roof, windows, HVAC, electrical, bathrooms and kitchens?
If you have bought a property as such, it is best to get some hard bid numbers now along with a appraisal of what the property may be worth after these improvements are completed? If…the after repairs, the value is not going to workout as planned, it may be best to re-wholesale it and or improve in stages?
You have to remember why you decided to get into this business?
The fourth stage is not the stage that you may want to do, unless you are planning on living there the rest of your life. This is the main downfall of most new real estate investors. They “fall in love” with the property. They get photos from Architectural Digest along with their life savings and proceed to set new records.
The property becomes grossly over priced to a point that they cannot resale to even break even and also the proposed monthly rent is out of line with market prices. To learn more, please visit my web site. Thank you…
www.truthofrealestate.com/profits