If you are investing in rehab properties in the San Antonio area then make sure you read this blog post because it is going to give you the top 6 things you need to know about rehabbing an investment property in San Antonio…
Rehabbing investment properties can be fun and can earn you a lot of cash, but do not go into it uninformed! Just because those people on the rehabbing shows on TV do well doesn’t mean that you will automatically cash in big time.
Make sure you understand these top 6 things you need to know about rehabbing an investment property in San Antonio.
Top 6 Things You Need To Know About Rehabbing An Investment Property In San Antonio
#1. Not Like TV
A lot of individuals get into rehabbing because they see people doing it on television. But you have to keep in mind that television shows are edited down to 30 or even 60 minutes, from weeks or months of work, plus they only show you the major things — the big money, the long odds, the big wins. Everything else doesn’t make it to air, but you’ll quickly discover that there’s plenty of mundane work to be done.
The absolutely most important thing you need to do when you rehab is to create a strategy to determine your own time, your steps, the people involved, and your budget. Your plan needs to be comprehensive, precise, and account for situations outside of your control.
Part of your preparation process needs to accurately account for the cost of the rehab, including demolition, removal, new supplies, installation, and clean-up. However, there might be more! What about insurance, permit fees, garbage dump fees, overtime for your team, and perhaps a pizza lunch to keep everyone at the property for a little while longer.
Don’t forget the permitting process! This can look like a costly and time-consuming step, but if you skip it it can really be worse! Just take the time, build it into your plan, and follow the procedures.
#5. Cost Of Downtime
Be aware of the costs of downtime. Lots of new rehabbers do not understand how expensive it is to have a home that’s not being worked on. Every hour that the house sits vacant is another hour longer that you are paying carrying costs and delaying your earnings.
#6. Expect The Unexpected
Maybe the biggest surprise lesson which new rehabbers learn is that you must always expect the unexpected. There will always be something with each rehab that causes headaches, frustration, delays, or additional expenses. You need to factor this into your preparation and mitigate as much as possible, but be prepared to deal with it — whatever it might be.
Considering rehabbing? Good for you — it can be an enjoyable way to earn good money. However, it is nothing like what you see on TV. So make use of these top 6 things that you need to know regarding rehabbing an investment property in San Antonio to better prepare yourself for success.