Rehab properties are becoming increasingly popular because they can be a smart financial investment.
Income properties provide owners with a steady, passive revenue stream, build up equity over time, and support financial freedom.
If you can buy a property at a low price and add value to it through rehab and repairs, then you can ensure it’s earning the highest return possible. There are many homes for sale in Orlando that might just fit these requirements for a rehab property.
4 Things to Know About Property Rehab
Rehab properties, fixer-uppers and house flipping have taken the home and garden television scene by storm. But sometimes these shows can make property rehab projects look easier than they are. If you’re thinking about investing in a rehab property, then here are some things to be aware of before taking the plunge.
1. Rehab Properties Must Be Profitable
It’s important to be clear from the beginning that the purpose of investing in a rehab property is to turn it into a profitable undertaking. To achieve this, you need to make a smart initial property purchase and keep your renovation costs down. Your total rehab investment should cost less than what you could flip the property for, or what you can earn in rental income.
2. Establish A Realistic Timeframe
Rehab projects can quickly run over budget and over time if you aren’t realistic. In any renovation case, you need to be conservative in your estimates. This means being prepared for problems to arise.
You need to have an expectation in your mind that your project will take longer than you initially plan. This means that you should always be working to either stick to your deadlines early on in the process or do what you can to stay ahead of them.
3. Set Smart Priorities
When you take on a rehab property, chances are there will be some major issues with the main systems of the house. To earn a return on your investment, it’s critical to prioritize plumbing and electrical upgrades first. These are basics, but they’re vital in adding value to the property.
Other important priorities include insulation as well as foundation and building envelope integrity. Once you’ve rectified these issues, then you can spend your remaining budget on cosmetic upgrades.
4. Work With A Professional Rehab Team
Taking on a rehab property is a rewarding venture when done properly. To avoid many of the common property rehab pitfalls such as a lack of preparedness, budget over-run and extended timeframe, it’s always wise to work with professionals.
Professional rehab teams have the experience to quickly and efficiently turn a rehab property into a cash-flowing investment. They can anticipate hidden problems, diagnose issues and apply solutions thanks to their team of construction and real estate pros.
Work With The Realty Medics
If you’re thinking about investing in a rehab property, then choose a team of professionals you can trust. The Realty Medics is a multi-service property management company that provides property rehab and repair services for investment properties.
As property management experts, we know the smartest types of rehab repairs to take on. These are the ones that will earn you the greatest return and maximize your rental income. Contact The Realty Medics today to learn more about our Investment Property Rehab Services.
