Rehabbing a Property

Rehabbing a Property

Rehabbing is a term commonly used in real estate, which means to renovate or fix-up a home. Most every home that is purchased will need some kind of rehabbing, whether miniscule or large. The costs of rehab are an important factor in the profitability of a home, because you’ll ultimately want to make more in selling the home than you spent on your purchase and renovations. Otherwise, you’re going to be in the negative. Let us take a closer look at what rehabbing actually entails.

Rehab Overview

When rehabbing a property, whether your own home or an investment property, it is important to estimate the total costs involved. It is easy to end up over or under investing in rehabbing, so rehabbers will have to find the right balance.

It is important to consider what renovations will be most appealing to a wide audience of potential buyers, and how those renovations will affect the home’s value. When done properly, a house can be bought low, strategically rehabbed and sold to earn a profit.

Rehab Categories

Rehabbing is generally performed for one of the following situations:

  • Personal Use– In this scenario, you will be living in the home you are rehabbing, which creates less risk and fewer time restraints. You can make the renovations based on your personal tastes; keeping future resale value in mind of course.
  • Rentals- Investors typically will rehab rental properties in order to make them more appealing or valuable to renters, to in turn charge a higher rent.
  • Flipping- Many investors will buy properties for a low price, with renovations in mind that will increase the value, and complete them with the intention to resale and make a profit.

Rehabbing can include painting the interior or exterior of the home, re-shingling the roof, adding new appliances, replacing windows, and much more.


Before you start your rehab project, we have some additional tips for you.

  • Always have a cost estimate
  • Decide if you are going to need contractors
  • Ensure that you have the proper permits in your possession
  • Find a place to get your supplies

Rehabbing a property is a tactic that is often times necessary, and can also be very profitable for property owners.