Common Mistakes in Real Estate RehabbingCommon Mistakes in Real Estate Rehabbing
Exceeding the budget. This is one of the most common mistakes an investor makes. To avoid this, one should get an estimate from a reliable contractor. Once you get an estimate, calculate how much you are willing to spend on the project. If you cannot afford it, might as well not invest in it. Move on to another property.
Going over the top with the repairs. Make the property blend with the other houses in the neighborhood. If the community is a low-class type of area, do not make repairs same with upper-class houses.
Ensure that the important parts of the house are worked on efficiently.
Buying a property that has serious damages. Many properties are made to look as if there’s nothing wrong with it. If you do not have the eye to see serious damages such as on the foundation or roof, better hire a professional inspector to do it for you. Damages on the important parts of the house such as the foundation can cost you thousands of dollars.
Doing without termite inspection. This is the same with the one above. Hire an expert to search for termite infections. Termites are hard to spot at a glance so professional help is needed. Neglecting termite inspection might lead to some serious liability in the future.
Working without permit. Rehabbing properties needs permit. Your repairs would just go to waste if you do not have the proper permit because you won’t have the right to sell the property.
Sacrificing the quality of work in order to save money. Make sure that the repairs you’re going to make are done according to code. Careless repairs would just lead you to bigger liabilities and costs when a buyer complains about it. If you do not have enough knowledge and experience in making repairs, you might as well pay a professional to do it for you. This way you can be sure that everything is done accordingly. You will save more money if you invest in good service repairs.