AgentOwned Realty

The Avid Rehabber

Posted By: John Boyer In: The Avid Rehabber
Date: Wed, May 31st 2017 12:45 pm

May 31, 2017

 “The Avid Rehabber”

Whether rehabbing is a hobby or your job, we will try to give you as much information as possible in a blog format to help you become an entrepreneur at Real Estate Investing.

First and foremost, do not and I repeat, do not attempt to be a rehabber without education.  There are many courses online as well as formal education in many local colleges that will help you in the process of acquisition, construction and determining the magic ARV (After Repair Value).  I am sure most of you have watched house flipping on TV and think “I can do this,” but watch out for the pit falls, unrealistic ARV, extra expense in holding time and many more.

Let us first do a quick study on ARV:

  1. Know your buyers and specific market the target house is in; for example, a house in Ladson, SC with the same number of rooms and square footage will be worth far less than a similar house in Mt Pleasant, SC.
  2. Buy with full knowledge of the ARV, have your Realtor supply you specific numbers and an accurate CMA (Comparative Market Analysis).
  3. Your numbers to buy and rehab the house should be about 70% of what you intend to sell the house for (ARV). I mentioned holding time is a realistic cost which includes taxes, utilities, interest, legal fees and commissions and those costs will cut into that 30% profit.
  4. Finally, stick to the ARV when you are ready to sell, don’t get greedy or as you may find out the house will sit on the market eating your profit.

I will try to end with pictures of some of our before and after projects and by the way J and C Home Buyers have not lost money in any of our rehabs:

                          Before                                                                                After

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