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Investment Property: What to Repair when Flipping a Rehab Investment
by Jay Redding on Aug 27, 2010
One of the most common forms of real estate flipping occurs when the investor finds a good deal on a property that needs repair, fixes the issues, and resells the home at its retail value for a (hopefully) substantial profit. As with anything, rehabbers come in all shapes and varieties, and the degree to which they are involved in repairing the property varies accordingly. Some will make minimal repairs, spending practically no money at all, while others may spend $50,000 updating systems, installing hardware, and so forth. So how does the investor know how much effort to put into repairs?
The answer is not a simple one. Generally speaking, it will depend on the neighborhood in which the property is located. The rule of thumb is: don’t try to make it the nicest home in the neighborhood; just be sure it fits in, and give it the best presentation you can. In other words, if you are in a neighborhood where none of the houses have a garage, don’t spend...Read More >>
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