Prehabbing and rehabbing in Orlando market?

5 Replies

Hey BP,

I am interested in doing prehabs and some rehabs in the Florida market. I would like to know for the market what is the usual profit in the Orlando market for prehabs and rehabs after all expenses are paid. Thanks. 

@Wendy Hoechstetter

"Prehabbing" is the wholesaling of rehab properties prior to their rehab. In other words, buy lower than low, and sell lower.

@Marcus J Richardson ,

There is never any "usual profit". 

For one, trying to set uniform prices violates anti-trust laws.

Two, every deal is 100% unique - some deals have a $5K profit margin for the wholesaler, and the next time there's a $50K margin. Every time you evaluate a deal, you'll be able to determine the margin you want to set.

Three, you yourself are going to have to set your desired "profit" for any deals you attempt. Are you willing to chase a $1K house, or is a $5K margin going to be your minimum? Only you can determine what makes you tick. 

Originally posted by @Wendy Hoechstetter :

What is a "prehab"?

 My understanding of a pre-hab and they way we use the term is, either getting a property under contract or make the purchase and doing light work to make it more desirable to a re-habber.

Example; we put a property under contract, evicted a non-lease tenant, and cleaned out the property of all trash. Then we sold it to a re-habber who previously did not want anything to do with it. 

Appearance makes all the difference!!!

Maybe six hours of work = $18,000

Hope this helps