Being able to accurately estimate repairs is a major component in building a successful rehabbing career. Profits are maximized, there is potential for greater opportunities, and you’ll be better able to choose the most lucrative projects.
Investors with plenty of experience under their belts can evaluate a single-family property and determine a rough rehab estimate in as little as twenty minutes. They’ve fine-tuned their skills to quickly discover issues and have worked on enough projects to have a good “guesstimate” of how much it would cost for something like a kitchen remodel. If the property has potential, investors typically spend extra time further examining the property, jotting down notes and snapping photos. Once that’s done, it’s a wise decision to bring a contractor in to perfect the numbers and introduce another pair of eyes to the prospective project.
As you’re doing your walkthrough with a contractor, there are a few items to keep an eye out for when evaluating a project. For starters, check out the electrical upgrades. Depending on the age of the property, there may be several issues that need to be addressed that may require the services of an electrician. The roof and water stains are also highly important. In the case of the latter, it’s worth figuring out where the leaks are coming from and if the property was repaired properly.
Foundations, code violations, as you walk through more properties and do more renovations, the process will become much easier. You’ll find yourself able to spot issues quickly.
This update is by Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application.