Rehab Real Estate – The First Steps to Success
Starting out with investing in rehab property is a viable strategy, but how do you launch out? The first step is to establish a rock solid business plan and a detailed financial forecast. Once you have these, you can get started.
Rehab real estate can be divided into three main categories: personal, rental and flip. All three carry their own risk/benefit ratios. To start out, you should begin by revamping a property for personal use. Living in the house whilst doing the renovation will save you money as you will only have to budget for your living costs.
On the other hand, if you are rehabbing to rent or to flip you will have to think of your potential buyer. Hence, try to choose building materials and design elements that will appeal to many different types of people. In case your intention is to live in the property first but pass it on after, think carefully about modifications that may suit your personal taste but may not be favored by others.
Getting into rehabbing can be a risky business and you are bound to make mistakes. As matter of fact, treat your first property as a rehabbing course. Something where you can learn without the fear of making mistakes. Going back to the first advice, doing a renovation for personal use will give you the time and space to explore and develop.
When the time is right and you decide to sell your first property, look for a moderate deal with a satisfied customer. Chasing the millions from day one could leave you frustrated for a long time and make your first deal a miserable one. Going step by step will make both you and your business a long-term success.