Five Common Mistakes Real Estate Rehabbers Make And How to Avoid Them

Although there are a lot of similarities between flipping a house for personal use and doing it as a line of business, there are a lot more considerations to keep in mind when doing the latter. Real Estate Rehabbers are professionals on this matter, but they can also do small mistakes.

If you’ve already rehabbed a house for yourself, then you already know the basics of home improvement: have a professional inspect the property with you, never skimp on materials, and find the best contractors — always.

Once you have those considerations locked in, all you have to do is avoid the following common mistakes that newbie real estate rehabbers make.

1. Biting off more than one could chew

You’ve probably heard a veteran rehabber say no house is ever unflippable. While this may be true, you have to be realistic about your time, budget, and skill set, especially on your first few rehab projects.

The last thing you want is to start with a project that requires intensive foundational repairs when you don’t have the time or resources to spare. You don’t want to find yourself five years down the road knee-deep in debt and still stuck with a house you can’t sell.

Take your time when looking at properties you want to flip, and pick ones that require minimal repairs — at least while you’re still trying to get into the groove of your new career path.

2. Overdoing upgrades

It’s worth reiterating that rehabbing a house for business is way different from flipping one for your personal consumption. When trying to vamp up the property, refrain from doing unnecessary upgrades and overly-personalized finishing touches that are based on your own preference.

Always remind yourself that you’re not the one who will live in the house, therefore you don’t particularly have to be in love with the final outcome. All you have to do is make sure the house is perfectly livable, completely repaired, and is worth the price you want to sell it for.

Here’s another tip: you don’t have to fix what’s not broken. Some rooms only ever need a fresh coat of paint as an upgrade. Most buyers will want to add their own touches to the house anyway, so better save your funding for critical repairs and necessary upgrades.

3. Lining up for funding too late

When flipping a house, newbies easily get moved by the anticipation of how much money they’re going to make after a sale. However, before you get excited about the prospects of getting a significant profit from your newly refurbished property, you must be aware of the costs it takes to do so. Paint jobs, repair work, and additional furnishings cost a lot of money and this must be one of your first considerations before even thinking about getting into this business.

People often forget the tedious process of getting approved for a loan just to flip a house. Fortunately, if you don’t have the cash, there are still many fast and hassle-free funding opportunities for the property you want to sell.

4. Putting off advertising

By the time you are finished flipping a property, you might already be running low on funds, and thus need to sell the property right away. Digital house hunting is the name of the game nowadays, so you have to be on top of your game in terms of digital marketing efforts.

5. Leaving it all to the ‘pros’

For repairmen, advertisers, contractors, and real estate brokers, one tell-tale sign that a person is new to the house rehab industry is when he or she leaves most of the decisions out to the ‘pros’. This means that they don’t really get their hands dirty and just concern themselves with the upfront costs and possibly the income to be earned from flipping a house.

Selling a refurbished job is not a source of passive income. It’s an actual business that you need to get involved in. Otherwise, you’d end up unsatisfied with the work, or worse, the property won’t ever be sold.

Now you know the 5 common mistakes to avoid when it comes to rehabilitating any real estate property. Flipping a house requires a certain commitment but that doesn’t mean you don’t get to have fun. Just trust the process and do your fair share of work to make the experience fulfilling, worthwhile, and most of all, profitable.