Comments on: That First Rehab http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/ Learn, Network, Invest Sun, 22 Nov 2009 10:53:57 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Duluth Real Estate http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52953 Duluth Real Estate Fri, 14 Dec 2007 15:28:04 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52953 WOW! What a crazy story. You really never know what you are getting into when you start one of these projects. Thanks for an interesting read! WOW! What a crazy story. You really never know what you are getting into when you start one of these projects.

Thanks for an interesting read!

]]> By: Rick Marnon, Howell http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52902 Rick Marnon, Howell Wed, 12 Dec 2007 15:08:05 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52902 Sorry to hear that this project cost you more than you wanted. I had a similar situation with my first, except my homes well pump failed and I had to replace the hot water heater, furnace, well pump (obviously), and the sump pump. That would have saved me a fair amount on the project, but we live and learn. Sorry to hear that this project cost you more than you wanted. I had a similar situation with my first, except my homes well pump failed and I had to replace the hot water heater, furnace, well pump (obviously), and the sump pump. That would have saved me a fair amount on the project, but we live and learn.

]]> By: Appleiphone forum http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52885 Appleiphone forum Wed, 12 Dec 2007 06:41:07 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52885 Funny.. really funny story. I didn't guess what kind of story by the name of the post. I enjoyed reading. Funny.. really funny story. I didn’t guess what kind of story by the name of the post. I enjoyed reading.

]]> By: Connie Brzowski http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52883 Connie Brzowski Wed, 12 Dec 2007 06:37:42 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52883 Enjoyed reading about your first rehab-- our first personal residence was in original condition when we bought. We did some expansion and updated the kitchen... and the market plummetted. We couldn't sell for half our purchase price. When the market finally turned around (7 years later) we sold for more but not much :) Great article~! Enjoyed reading about your first rehab– our first personal residence was in original condition when we bought. We did some expansion and updated the kitchen… and the market plummetted. We couldn’t sell for half our purchase price.

When the market finally turned around (7 years later) we sold for more but not much :)

Great article~!

]]> By: Steven Boorstein http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52878 Steven Boorstein Wed, 12 Dec 2007 01:33:38 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52878 Great points. On my first flip, I woefully underestimated the amount of work needed. I had seen the house, had to make a quick decision and in the process fell in love with the idea of restoring it. I also didn't have a home inspection since I thought I had a great deal and "hey the place needs to be rehabbed anyway!" Once I got in and started the repairs, I realized it was going to become a money pit (for me as an investor), if I saw it through to the total rehab. There was nothing structurally or mechanically wrong, but it was just one of those old Victorian houses where the windows and doors were all oversized and "custom" and the number of rooms and floors made it an expensive project. I did the things that mattered like refinished the hardwood floor, laid new carpets, painted, replaced old plasterwalls with new drywall, etc. And, then was fortunate enough to be able to sell it at a discount to the overall market... still as a "fixer" to owner occupants who didn't think that it would be a money pit, but more a "labor of love" to restore a historic-like house such as that one. I had to agree, the house had features that were beautiful, but not practical for me to continue the rehab. In the end it all worked out and I made a nice profit, although I realized that when "when your eyes are bigger than your head" you have to be careful. Never buy a property because you "love it"... but it because it makes good business sense. Steven Boorstein Landlord Business Insider Great points. On my first flip, I woefully underestimated the amount of work needed. I had seen the house, had to make a quick decision and in the process fell in love with the idea of restoring it. I also didn’t have a home inspection since I thought I had a great deal and “hey the place needs to be rehabbed anyway!”

Once I got in and started the repairs, I realized it was going to become a money pit (for me as an investor), if I saw it through to the total rehab. There was nothing structurally or mechanically wrong, but it was just one of those old Victorian houses where the windows and doors were all oversized and “custom” and the number of rooms and floors made it an expensive project. I did the things that mattered like refinished the hardwood floor, laid new carpets, painted, replaced old plasterwalls with new drywall, etc. And, then was fortunate enough to be able to sell it at a discount to the overall market… still as a “fixer” to owner occupants who didn’t think that it would be a money pit, but more a “labor of love” to restore a historic-like house such as that one. I had to agree, the house had features that were beautiful, but not practical for me to continue the rehab.

In the end it all worked out and I made a nice profit, although I realized that when “when your eyes are bigger than your head” you have to be careful. Never buy a property because you “love it”… but it because it makes good business sense.

Steven Boorstein
Landlord Business Insider

]]> By: Sam Chapman http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52875 Sam Chapman Tue, 11 Dec 2007 23:27:06 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52875 Anyone not getting a home inspection is in for trouble. Any real estate agent allowing this without having a form signed by the buyer stating that he doesn't want an inspection is looking for trouble. Anyone not getting a home inspection is in for trouble. Any real estate agent allowing this without having a form signed by the buyer stating that he doesn’t want an inspection is looking for trouble.

]]> By: Mitch Yorkeed http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/comment-page-1/#comment-52872 Mitch Yorkeed Tue, 11 Dec 2007 19:24:15 +0000 http://www.biggerpockets.com/renewsblog/2007/12/11/that-first-rehab/#comment-52872 No one is certain on which part should be rehab or not, which is a very good news to those who are in the rehab business. however, there are things to remember, particularly accessibility and availability. If you are just venturing in this kind of business, try organizing your tasks and potential jobs then never overlooked advertisements. They play an important role in the survival of real estate business. You have to put your service out there. No one is certain on which part should be rehab or not, which is a very good news to those who are in the rehab business. however, there are things to remember, particularly accessibility and availability. If you are just venturing in this kind of business, try organizing your tasks and potential jobs then never overlooked advertisements. They play an important role in the survival of real estate business. You have to put your service out there.

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