When you decide to rehab a property, it is usually a much bigger job than you may think. Professional investors understand the potential profit of an investment property and can see past the poor condition of a house. Therefore, when considering properties that require rehabilitation, it is absolutely essential to understand what improvements and restorations are necessary for a rental in the San Diego real estate market vs. those you would make if it were for your personal use.
When you decide to rehab a project, it is very important that you understand what you will do with the property upon completion. Will you hold onto the property as a rental or will you place it on the market to sell? Is the neighborhood up and coming with rentals, or are properties being snapped up by buyers as quickly as they are listed? It is imperative to understand the market trends in San Diego so you can make the most informed decision that will hopefully lead you to a successful outcome. Knowing the answers to these questions can help you get started and stay on track. No matter which option you select, fix and flip or long-term rental property, it is always helpful to have a guide, so read on as we explore these six tips for handling low-budget rehabs in San Diego.
Good Bones
First and foremost, you need to understand when looking at a potential property in San Diego, is the property will be a good candidate for a fix and flip or is the work simply too overwhelming and cost prohibitive. It takes a trained eye to spot the red flags that ward off more experienced investors; this is why a professional should be involved in the inspection. It is important to note that the location is something you cannot change, so make your choices wisely. Again, professional buyers like those at Trusted House Buyers can help you find the right investment for your goals. When you work with one of our professional buyers at Trusted House Buyers, you are working with a full-service in-house team of industry specialists, including everything from inspectors to attorneys, title and closing specialists and even a property management team.
Timeline
You will need to understand the timeline you are facing before seeing any income from your low-budget rehabs in San Diego. There are many holding costs that inexperienced investors do not calculate in to their numbers. Holding costs such as the mortgage, taxes, insurance, and utilities don’t stop because you are dealing with contractors who failed to complete their work on time. Real estate investors require a budget based on a realistic timeline to understand the holding costs they’ll need to calculate to maintain an investment property during the rehab process. If the timeline and budget do not work together, your profits can quickly slip away with poor planning. When you work with Trusted House Buyers, there is an understanding that your project will be completed on time and will earn you the highest possible returns on your investment dollar.
Numbers
The numbers are the bottom line when considering low-budget rehabs in San Diego. There are always unexpected expenses, so it is important to make sure your numbers reflect that. Determining the risks associated with the subject property can help you decide, but on average, you will need somewhere between 5 – 25% of the budget allotted for the unexpected. For example, an older property may require upgrades to bring wiring, roofing or plumbing up to code. Now, when you work with professional buyers like those at Trusted House Buyers and their team to help you step by step, you can relax knowing you will stay within your budget on your low-budget rehabs in San Diego.
Negotiations
When you seek to invest in low- rehabs in San Diego, there is often room for negotiation in the asking price. Once you have your budget determined, you will decide the best-price you can offer that fits within your goals. Professional buyers like those at Trusted House Buyers have experience negotiating with a wide variety of settings and sellers, and rest assured that we will provide you with the best and most fair cash offer for your home in San Diego. The seasoned professional buyers at Trusted House Buyers are experts at negotiations.
Trusted House Buyers
The professional buyers at Trusted House Buyers are highly educated professionals and accomplished local San Diego investors who have a strong desire to help our community while also helping the individual sellers make the best possible decision for their unique needs. In addition, you will benefit from the vast connections at Trusted House Buyers built over years of working with skilled local industry pros with the mindset of investors who understand your need for a quick, reliable assessment of investment properties and the best possible outcome for your rehab project. Call Trusted House Buyers at 619-786-0973.
