Posted by JoeKaiser on April 16, 2002 at 02:52:31:
While it is not hard to “find properties,” as you suggest, it is hard to find “good deals” that make profitable rehabs possible. I’m not sure you’re appreciating the difference. Deals that can be rehabbed at a profit aren’t just lying around and yes, you will definately have a tough time finding such an animal.
Also, and just as importantly, if you’re doing extensive rehabs, a “handyman” won’t cut it. I have a handyman, but he’s got a crew. Remember, holding costs can easily equal rehab costs, so speed is a major consideration. A guy with a hammer can spend a year on your rehab. You think you’re getting a bargain because he works cheap (or worse, he’s you), but in reality, for what you’re spending on the monthly payments, insurance, utilities, etc., you could probably have hired Bob Villa and come out ahead (probably not, but you get the idea).
Can’t help you on the “punchlist.” I’ve never been good at this sort of thing. The most successful rehabs I’ve ever done were those where instead of acting like the general contractor, I simply went out and hired one. Instead of a hundred visits to the property and an equal number of checks, my best rehab last year required two visits and two checks.
Rehabs are tough, Todd. Hopefully, you’ll start small with an “easy” fixer and work from there.