What type of rehab projects would you guys stay away from?

6 Replies

One type of job would you guys avoid?

Rod Desinord, Real Estate Agent in FL (#SL3255845)

The ones where you lose money .

i tend to stay away from anything foundation wise if the house needs to be jacked up and fixed I've found that the cost of this is too much on top of other issue the house has and will to two options from there knock down or walk away 

Originally posted by @John Oitice :

i tend to stay away from anything foundation wise if the house needs to be jacked up and fixed I've found that the cost of this is too much on top of other issue the house has and will to two options from there knock down or walk away 

 Thanks for your feedback on this post. I ask because some people eventhough they may feel that they can make money off a project have told me they tend to want to stay away from certain jobs because of the unforseen headaches that come with it, thats why i asked.

Rod Desinord, Real Estate Agent in FL (#SL3255845)

yea foundation is my main stay away also really starting to hate anything thats owned by fannie mae lol 

@Rod Desinord

When I first started investing, I stayed away from foundation issues, mold infested properties, etc. But as I have gained experience and the market is heating up, I have become focused on one thing and one thing only, to do deals that make money. Foundation and mold issues are bigger risk, but they are bigger reward also. Few months ago I passed on a property that had foundation problem. Another investor who was willing to tackle that project bought it, fixed it and put it back on the market and sold it in under 7 days. Would I pass that project now? Absolutely not.

Everything else being equal, I would choose a straightforward rehab over major foundation/mold issue, but I wouldn't stay away from any type of rehab project. As long as return of my time and return on my investment adds up, I will move forward on that project.

The current market is such that inventory is really low, so investors can't really be picky with what kind of projects they want to take on.

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