Rehab Frustrations (Venting)
So, our first rental spoiled me. It was truly "turn-key." Our second is the exact opposite. My original budget, for the $130k project, was $20k. It is sliding up to $25k. I just put in a new AC and am about to do finished concrete floors. Some of the experiences I have had have been positive, but overall, it just has been one surprise headache, bad rafter(?), after another (Challenger Panel). My projections with all of the work is looking to be under/at $25k and I am just frustrated. It has been less than a month since the purchase and everyone, overall, has been good to work with, but how do I avoid "feeling" hopeless about this project? The profit margin on the rental is over 100% monthly and the flip profit is probably +/-$50k. Being in the "weeds" like this is really eating away at my spirit though. We picked up four houses last month, I expected the rehabs to be huge challenges, but I really stepped into it with this rental. Just venting folks. Sorry, if this is the wrong spot. New landlord cutting my teeth and learning the ropes. I know this is a ridiculous statement, but I wish I had entered into this with a bit more "seasoning." :-) I'm getting it now. Just needed to get this off my chest. Thanks for being there, you all are amazing. I appreciate the positive vibes of BP so much!
Quote from @Anthony Parr:
You learn more from mistakes than successes. How do you expect to be "seasoned" if everything goes well? Consider this a lesson that will make you a better investor in the future.
I agree. Just venting. It is a fun adventure nonetheless.
#4 All Forums Contributor
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- West Valley Phoenix
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#4 All Forums Contributor
- Contractor/Investor/Consultant
- West Valley Phoenix
Dude, you should be thrilled to be doing so well. You're only $5k over your original budget? Ahahahahaha. That's only 25%.....
There is a saying in the business - 'twice as much, twice as long'. That would be your typical remodel......
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
Quote from @Nathan Gesner:
Quote from @Anthony Parr:
You learn more from mistakes than successes. How do you expect to be "seasoned" if everything goes well? Consider this a lesson that will make you a better investor in the future.
same with aviation sometimes you have to take on that 90 degree cross wind landing .
but really 5k over budget shoot thats a win every day of the week in the rehab business.
