What are the difficult/frustrating parts of rehabbing? I know it can be a great business move, but I'd like to be more familiar with the downsides.
For me the answer would be the way something small snowballs into something bigger. For example, someone mis-measures an area of the kitchen which means that last cabinet just doesn't fit, which means you have to order a different one, which means you're behind schedule, and then two days after it's supposed to arrive you get an email saying it's on backorder and will take another month, which means you're either going to list it with an unfinished kitchen (not ideal) or you're not going to sell it when planned.
To counter that, the fun part is that you get to be creative and figure out how to utilize a 12" space in your kitchen that won't require waiting a month for a cabinet (custom wine rack?). But sometimes it makes you cry for just a minute.
Can't wait to see what everyone else posts.
Having the house get broken into 2 days before staging and having the only section of plumbing that wasn't pex stolen and flood your finished basement. That could be frustrating haha. ..glad I can look back and smile at that now. There can literally be thousands of answers to that question. .but I guess it's all worth it as long as your getting a check at closing!
Not really knowing what you're doing and spending way more than you thought you would. If you're a rookie, you would be strongly STRONGLY advised to get expert help. You can find free mentors in your area to guide you. No you can't you say? Well I did, so I know it's possible :).
Since I started doing mostly owner financing, I just do a light rehab and leave the rest to the buyer. It works very well. My days of doing full rehabs and rentals are behind me! :)
dealing with contractor excuses and lies.
"The carpet will be installed Tuesday or Wednesday"- that always means Thursday.
"We'll have everything done this weekend except for a few odds and ends"- I guess odds and ends means all the appliances, door knobs, plumbing fixtures and painting the garage
"We'll have our part done by Tuesday"- Your the GC, its all your part... what exactly does that mean??
"I didn't notice that the ceiling fans hadn't been replaced"- so when you walked into the bedroom and you say the wires hanging down and the ceiling fan in the box in the middle of the room, what did you think it was?
1. Finding properties that have enough meat on the bone to make a profit. (solution - networking with others in real estate investing)
2. Accurately estimating rehab costs so you don't end up breaking even or worse, losing money. (solution - read J. Scott's book on estimating rehab costs)
3. Finding contractors that work for reasonable money, don't do a hack job and finish in a timely manner. (solution - networking with other investors to find contractors they use and are happy with)
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