Rehab Addict

96 Replies

Yes there is a market for restoring older homes. Take a look a what Tucker Merrihew is doing in Portland Oregon. He has done several flips in historic neighborhoods of Portland. He had done a podcast for Bigger Pockets and recently started Deal Finders Academy.

Originally posted by @Howard Manning :

Hey Rachel. one thing you might consider is reaching out for city, state, and federal grants.  There are tons of them out there and they love historical properties, community improvement projects, training un- and under-employed people.  All these can apply to rehabbing.  I looked into a block improvement project in Wilson and got lots of potential partners such as Habitat for humanity, Bk of Am, BB't. and city preservation society.  I have not followed on it yet, been too busy rehabbing.  But inner cities have plenty of guys that would love to work on rehabbing and get trained too.  In Wilson there are plenty of guys willing to work for $9.00 an hour and some have experience with painting, carpentry, roofing, etc.  good luck with it

 Thanks for the info Howard.  I did a little research on the grants here in Baltimore, but it seems that most of them are for owner/occupants.  Still worth looking into a little more for sure.  I have a soft spot for the historical properties, but from a business standpoint, it may not be the most logical thing.

Originally posted by @Chuck W. :

Yes there is a market for restoring older homes. Take a look a what Tucker Merrihew is doing in Portland Oregon. He has done several flips in historic neighborhoods of Portland. He had done a podcast for Bigger Pockets and recently started Deal Finders Academy.

 Will definitely check that out Chuck.  I'm making my way through the podcasts now.  That sounds like one, I'd definitely like to listen to.  

Originally posted by @Jerry Rodgers :

Rachel,

I have done quite a few "traditional" rehabs that I have loved doing and took a lot of pride in completing.  I have looked into restoring the old "historic home" and decided that it wasn't for me.  I would love to bring one of those homes back to glory but my buddies who do rehab those homes say that getting the approval from the historic committees is very difficult and you have to restore the homes based on their determination of what they want the home to be like.  If that is the direction that you are looking to go and are passionate about it then you have a good chance of succeeding, just beware of where you are buying and make sure you can rehab the way you want without having to answer to some committee.  Good luck

 Thanks for the encouragement Jerry.  The older homes are definitely where my heart is and I hope to somehow make them a part of my business model, just haven't figured out exactly how that will work just yet.  I think pride in your work, no matter what type of property it is, shows in the end product.  

Originally posted by @Dave Gallogly :

We live and work (flip) in the metro area of Minneapolis MN.Over 70% of the homes we work on are from the 1910’s to 1950’s.Many of our homes have outstanding woodwork, original tiled bathrooms, and hardwood floors that just need to be brought back to life.For us, we have to remember that these houses are not ones we are living in, but are doing for resale.With this mindset, we might make a definite different decision on what we do with the house compared to if it was our personal house. Our houses that we work on are not restoration projects, but more of a bringing the original flavor back to life with some updated points.

For an example, last year we worked on an amazing home with a smaller footprint (720 sq ft) but had three stories.The Craftsmanship of the word work was outstanding; just a little rough at places and 90% of it was painted.If this was our own home, we might have stripped the paint, revealed the oak, and refinished all the woodwork, making it drop dead gorgeous (We love natural wood). After thinking it through from a profit vs. what we liked, we went ahead and prepped the woodwork and enameled it.The house still has much of its original style, while still profitable. On the sale of the home, the new homeowner told me how much they loved the dove white painted woodwork.

When we have looked at homes that begged for a true renovation, but we could not get the numbers to work.

 Good to know Dave.  That's kind of the route I was thinking of taking.  Maybe not completely restoring the home, but leaving some of the charming touches like woodwork or original floors and then modernizing other parts of the home to save time and money.  I just can't see stripping all of that history and character out of a home.  

I like watching Nicole and admire her for how far she's come. I feel like I could hang out with her on a job and have good time but my business model and market require swapping out those old windows even though I think they are cool. Most of them are painted shut and stripping and refinishing is cost prohibitive.
The Flip or Flop team surprises me because they seem to do well most the time and they get along and always have surprises.
I can't stand Flipping Vegas because that guy is cry baby and treats his team like trash and they never properly report their net.

i'm really a big fan of Income Property because i like his process and how he points out different things that are pluses and minuses about each property. But the only thing I don't understand, and I guess this is just a market thing as Scott's show is based out of Toronto I think? But you have an investor buy a $600-$700K   Row house with only a $200 cashflow. Which just seems incredibly risky because the downpayment for these homes are probably $100K.  I mean you would be better off putting your $100K into a bunch of CDs. 

Originally posted by @Account Closed :

@Rachel Gill There absolutely is a place for rehabbing and restoring old homes. It's what I primarily do and I find it very profitable, both monetarily and in personal satisfaction. 

For you, it will depend on your market, finances and abilities. There are many challenges in the process but it is so worth it.

 That's so good to hear Art.  The personal satisfaction part is what I believe is drawing me in.  The old homes are where my heart it is.  I'm hoping to somehow make this a part of my business model.  

That is a good point Rachel. If you have a passion for it...I would say that is the most part of any business plan. I have sold perfectly good businesses only because ultimately I lacked the passion to continue. Passion will pay more bills and create more success than anything I can think of. If your heart is into it....then you owe to yourself and the others around you to investigate this idea to its potential. Even if you don't make a million you will still love what you do...that is in itself priceless.