Re-Habbing Homes in Orlando has become a very popular business model lately.
With Orlando short sales on the rise and inventory becoming scarce, many Orlando re-habbers are cleaning up. The truth is that most people who are looking to buy a house, don’t want to have to deal with any repairs once they move in, or before moving in. Most potential home buyers just want to move their stuff and family in and not have to worry about the kitchen or bathroom that needs remodeling. For property investors who dedicate themselves to remodeling houses, this is great news.
We have several Orlando re-habbers that have been coming to us for years always looking for their next project. Although there are still some risks involved, if you do your research correctly there’s big money to be made.
Here’s a list of things you need to be aware of if you’re planning to re-hab an Orlando property.
* Stay away from houses needing major repairs. Unless you’re an experienced re-habber, don’t buy a property that needs any major structural repairs such as rewiring the electrical system, major plumbing repairs, foundation damage or severe fire damage.
*Get a home inspection as soon as you sign the contract. Getting a home inspection will cost you around $300 but can ultimately save you thousands by exposing some big ticket repair items that would have gone undetected without the inspection. Once your inspection report is complete, you can use the report to further negotiate with the seller or bank to lower the price even more.
* Never, ever try and turn a non-deal into a deal. What I mean by that is, some new investors are soo eager to start their 1st re-hab project, that their judgment gets clouded and they bend the numbers to make it look like they are making a good investment. [ kinda like when you fall in love with that sports car you’ve always wanted at the dealership, and you make up situations in your mind in order to justify the horrible decision you’re about to make]
* Consult with an Orlando Real Estate Expert to do some research for you. The most important thing to do when you’re planning on re-habbing a house is to make sure that your numbers are correct. There is nothing worse than buying a property at the wrong price, spending a month fixing it up and then finding out that you have to pay $5,000 to get it sold because you didn’t take the time to speak with an experienced Orlando realtor.
Jenny Zamora, Lic RE Broker
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