Updated about 16 years ago on . Most recent reply
How much to spend on a rehab
I'm looking at both duplexes and rehabs. My question is focused on the rehab arena. What is the most I should be spending on a rehab? Not in cash terms, but in percentage terms. If I find a SF home that is in need of work, does it matter how much work it needs? I'm assuming all that is important is how much profit you can make, but I wonder if there are projects with too many problems. Are these worth investing in or avoiding?
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I really do not look at it in terms of a %age as really only care about overall cost and whatever formula I am using for that particular exit strategy.
having said that I will walk away from a home if it needs structural work or a total gutting - not because of the cost or time but because there are easier ways to make money in today's market.
In a tight market maybe - but in todays market there is no need.
So to answer your question direct - no I do not use a %age but only consider the overall cost of acquisition / holding etc....