When rehabbing a home be sure to pay attention to these five major costs. Cost 1, your Team which might include contractors and inspectors. Cost 2 the initial purchase and ongoing appraisals or fees. Cost 3 the cost of the repair work and materials. Cost 4 the cost of ownership like ongoing maintenance and taxes. Finally cost 5 the cost of selling, will your end product be worth more money or end up being a financial disaster.
- Rehabbing a house involves more than good builders, it involves the input of lenders, real estate agents, lawyers and other business professionals, all working to ensure a smooth job.
- Costs beyond the actual renovation costs can include surveying costs, appraisals and inspections, as well as lender’s and attorney fees.
- Even if the plan is to buy and flip, it’s important to remember that while it’s yours you need to keep up the lawn, the mortgage payments and the utilities.
“Good contractors can be hard to come by, and a real estate investor may not be willing to compete with you for their contractor’s time.”