Posted by Brent_IL on September 14, 2003 at 20:05:44:
I know that people do this, but it always seemed like a waste of a rehab to me. A finished rehab is the equivalent of new construction. I would sell it for cash or hang on to it. Ron Guy said he acquires his Section eight buildings at lower prices by rehabbing.
I guess it depends on your personal definition of rehab. I try to divest immediately by seller financing, but all I ever do is patch, paint, carpet, and plant a tree. In my mind, these aren?t rehabs. When I sell on CFD, the long-term fix-up costs pass to the new buyer.
I would think that if you are shooting for cash flow that there are plenty of houses available that could be utilized for this purpose that require much less money upfront than does a rehab.
This is only one opinion that I based on the sole goal of cash flow. True rehabbers will have different ideas. I?d listen to them.