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34
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Siahna Im
#1 Real Estate Deal Analysis & Advice Contributor
  • Lender
  • Lakewood, WA
18
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34
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5 Rehab Costs Investors Often Underestimate

Siahna Im
#1 Real Estate Deal Analysis & Advice Contributor
  • Lender
  • Lakewood, WA
Posted

Don't forget about the “small” expenses:

  • Permits and fees
  • Dumpsters and cleanup
  • Material waste
  • Holding costs
  • Change orders

Individually, they may not seem significant. Together, they can seriously affect your margins.

What rehab cost would you add to the list?

  • Siahna Im

Most Popular Reply

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104
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27
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Nicholas Floyd
#1 Rehabbing & House Flipping Contributor
  • NY
27
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104
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Nicholas Floyd
#1 Rehabbing & House Flipping Contributor
  • NY
Replied

I’d add financing and extended holding costs when a project runs behind schedule. Extra interest, insurance, utilities, taxes, and even lender extension fees can eat into a deal quickly. That’s also why I’m a big believer in having a contingency reserve or access to additional business capital before the rehab starts instead of trying to find funding once an unexpected expense hits.

  • Nicholas Floyd

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