If you’re investing in rehab properties in the Chicago area then make sure you read this blog post because it will give you the top 6 things you need to know about rehabbing an investment property in Chicago…
Rehabbing investment properties can be fun and can make you a lot of money. But don’t go into it uninformed! Just because the people on those rehabbing shows on TV are doing well doesn’t mean you will automatically cash in big time.
Make sure you know these top 6 things you need to know about rehabbing an investment property in Chicago.
Top 6 Things You Need To Know About Rehabbing An Investment Property In Chicago
#1. Not Like TV
A lot of people get into rehabbing because they see people doing it on television. However, you need to remember that television shows are edited down to 30 or 60 minutes, from weeks or months of work, plus they only show you the big stuff – the big money, the long odds, the big wins. Everything else doesn’t make it to air, but you will soon discover that there’s plenty of mundane work to be done.
The absolutely most important thing you need to do when you rehab is to build a plan to determine your time, your steps, the people involved, and your budget. Your plan needs to be detailed, accurate, and account for situations outside of your control.
Part of your planning process needs to accurately account for the cost of the rehab, including demolition, removal, new supplies, installation, and clean-up. But there might be more! What about insurance, garbage dump fees, permit fees, overtime for your team, and maybe a pizza lunch to keep everyone at the property for a little longer.
Don’t skip the permitting process! This can seem like a costly and time-consuming step but if you skip it, it can actually be even worse! Take the time, build it into your plan, and stick with the process.
#5. Cost Of Downtime
Be aware of the cost of downtime. Many new rehabbers don’t realize how expensive it is to have a property that is not being worked. Every hour that the house sits empty is an hour longer that you are paying carrying costs and delaying your income.
#6. Expect The Unexpected
Perhaps the biggest surprise lesson that new rehabbers learn is that you should always expect the unexpected. There will always be something with each rehab that causes a frustration, headache, delay, or extra cost. You need to factor this into your planning and mitigate as much as possible but be prepared to deal with it – whatever it might be.
Thinking about rehabbing? Good for you – it can be a fun way to make good money. However, it’s not like what you see on TV. So use these top 6 things you need to know about rehabbing an investment property in Chicago to better prepare yourself for success.