Rehabilitating property is a profitable investment that can earn you a lot of money. However, if you are a new rehabber and are not armed with the right information, it could be the start of your financial downfall. Before you consider getting into the business of rehabbing investment properties in Houston, there are things you should know.
- It is not like what you see on TV
Most people who enter the rehabbing industry do it because of what they see on television. However, you should know that it takes weeks for the shows to be taken. The shows are also edited several times before they appear on your screen. Also, you only see the good stuff on television. If you get into it thinking that it will be as easy as you see on TV, you will end up getting disappointed as there is a lot of work you will have to do.
- It takes planning
Before you think of rehabilitating property, you need to come up with a plan. The plan will give you an outline of the steps, people you need to involve, and most importantly your budget. When making your plans, you need to account for what is and is not within your control.
- You need to be accurate
Your plan needs to have a high level of accuracy before you can get into the project. You need to accurately account for the following.
- Total cost for the entire project including demolition, renovation and everything included in the rehab.
- Permit fees
- Overtime costs among others
- Remember the permits
The permits should not be forgotten. You will need to take time and find out the permits you need to obtain for your project. It might seem costly, but it is beneficial in ensuring that the project goes on smoothly.
- Cost of downtime
Experienced rehabbers are aware that downtime is expensive. The more time property stays empty, the more you are delaying your income. That means that you should ensure that your property does not sit empty and instead, it is always being worked.
- Always expect the unexpected
New rehabbers expect the whole process to be simple and they get their income in a stress-free manner. However, you now that you need to work hard and even with the perfect plan, you still need to plan for the unexpected. Something might come up that you had not planned for and how you adapt to the new development will determine how long you will be in the industry and how successful you will be.
Houston is a good market for rehabbing a property. If you enter the market armed with these tips, you can be sure that though you will not experience what you see on television, you will have a successful career in investing property. Acquiring knowledge is the first step in having a successful investment career.